The Financial Ombudsman Service is under a virtual siege because of the increase in the number of complaints relating to payment protection insurance mis-selling. This office receives complaints when the in-house dispute resolution mechanisms of banks and financial institutions fail. The office has received more than 149,000 complaints in the first half of the year. Almost 66% complaints, more than of 98,500 complaints, are related to PPI. Continue reading
News and media channels have started highlighting the fact that refund of payment protection insurance money by banks and financial institutions has slowed down because of errors and mistakes. Nine months ago, banks promised quick settlement of refunds. A very small percentage of the affected individuals have received their money in a prompt manner. People are beginning to lose patience and are beginning to approach the Financial Continue reading
The last quarter of 2011 was a good one for customers who had filed PPI claims and complaints with the FOS. 68% of the claims filed were adjudicated in favor of the customers. This was drastically lower than the 90% plus success rate enjoyed in the third quarter. However, it was better than the 66% success rate that customers experienced during the entire year of 2010-11. The rate of success will depend on the merits of the case. However, the banking industry can no longer presume that the PPI complaint crisis was just a flash in Continue reading
The CEO of Lloyds Banking Group received a call encouraging him to file a PPI claim against his own bank. This prompted him to complaint against claims management companies that, according to him, promote false claims. According to the CEO, a quarter of the total claims received by the bank are fake. Every claim, whether fake or genuine, costs money to the bank that receives the same. The bank has been forced to set aside £375m Continue reading
It is very important to choose the right claims management company when filing a PPI claim. A professional organisation will understand the difference between the various types of claims and will choose the best option that will help you recover not the amount paid but also the compound interest due on the same. Such a compound interest claim was filed in the case that eventually led to a payout of £65,000 by MNBA to the victim.
Customers have been accusing banks and financial institutions of mis-selling payment protection insurance policies for the past few years. It was only in 2011 that banks and financial institutions in the United Kingdom accepted their fault and decided to set aside money to compensate victims of mis-selling of payment protection insurance policies. Banks decided to set aside a staggering £7.6 billion towards compensation. Of course, they did this only after a long battle in the High Court which resulted in a ruling against the banks. Those who have been following the crisis were shocked by the huge amount of Continue reading
The numbers provided by FOS clearly indicate the seriousness of the payment protection insurance problem. There has been a 25%+ increase in the number of complaints received by the FOS in 2011-12. In all, the Ombudsman received a record 264000 complaints in the year. 60% of these complaints were related to PPI. The FOS received more than 5000 complaints and enquiries for each working day in the past year. Continue reading
According to the Financial Services Authority, banks have paid a sum of £1.9 billion as compensation to victims of payment protection insurance mis-selling in 2011. The last month of the year witnessed record payment of compensation by banks and financial institutions with a total of £441 million being paid in December. Continue reading
Banks and financial institutions concealed the disadvantages involved in purchasing PPI. People often purchased this insurance policy under the presumption that no detailed analysis was necessary and that the policy offered nothing but fantastic benefits. However, banks were simply focusing on their greed and were trying to earn more profits at the cost of customers. In many cases, those who were not eligible for protection under this policy ended up paying a lot of money for the same. Self-employed individuals found that they could never file a claim because this policy covered only those with a salaried job.