Volume of complaints received by the Financial Ombudsman Service is coming down from the stratospheric levels reached in the past few years. However, mis-sold PPI policies continued to remain a major problem. 56% of all new cases received in the second quarter of 2012 are related to missold PPI. On the other hand, complaints relating to credit cards and current account transactions constitute just 6% of the total new complaints received in the quarter. While the total number of complaints received by the financial mediator has come down, the percentage of PPI related complaints has gone up. The financial mediator is also ruling in favour of customers in more PPI related cases. On an average, 50% of the cases are ruled in favour of complainants. This figure rises to 69% in PPI mis-selling cases.
Banks and financial institutions are liable to pay compensation worth £9 billion to customers despite the fact that £3.5 billion has already been paid. Such a huge amount of compensation is payable because of the fact that PPI mis-selling was a reguler and widespread practice. Thousands of individuals were compelled to purchase PPI despite the fact that they were not eligible to enjoy any benefits whatsoever.
If you are a victim of mis-sold PPI, then you should avoid dealing with unscrupulous claims management companies that will bombard you with offers of unprofessional services. It is advisable to make use of the Internet to get information about professional claims management companies or steps to recover the money on your own. Do not be in a hurry to handover your private financial details to an organization that charges a high fee or demands upfront payment of fees. If you are not comfortable with the idea of trying to recover mis-sold PPI compensation on your own, then you can make use of professional firms and services for best results.
How to proceed if banks do not accept your claim? What if they refuse to pay compensation? You should contact the Financial Ombudsman and make use of online forms to determine whether you are indeed a victim of PPI mis-selling or not. If yes, then you can proceed further, file a complaint with the mediator and seek compensation through a formal ruling. This process may take time and will involve additional formalities but chances of your success will significantly increase if your claim is rejected.