20 October 2014
The Financial Ombudsman Service (FOS) is the body that regulates on disagreements and issues between customers and banks, lender as well as other financial bodies in the UK. They have found that in the last few years, 70% of the complaints they are dealing with relate to payment protection insurance (PPI) - and the figures make sobering reading.
The first 6 months of 2014, saw FOS deal with 133,819 complaints from customers regarding PPI; compared to the last half of 2013, the figures show that complaints remain at historically high levels - there was only a drop in cases by 60,000 or so.
Despite this dip, PPI still remains the most complained about financial product ever in the history of British banking and financial services.
And so FOS has assigned a vast amount of people and resources to the resolving of PPI complaints - a whopping 70% is given over to resolving these complaints as fast as they can - with the industry regulator, the Financial Conduct Authority calculating that the compensation paid to customers so far tallies to £16 billion. And, estimates suggest that there is a lot more to go yet…
FOS also publishes the rate that shows how many of the case referred to it were upheld - this means, the rate in which customers found that they claim was successful and their bank or lender was told to compensate them. This figure is thought to be remaining steady with as many as 7 in 10 cases being upheld in the favour of the customer.
Many people assume that if they find PPI that they are automatically entitled to claim compensation but, this may not be the case. It is true, however, that the vast majority of people were mis-sold the policy - the terms and conditions were narrow, meaning that many people would not have been eligible to make a claim if they had wanted to.
It was also a policy that was expensive for the limited cover it offered and some people were 'advised' to buy the policy. Unfortunately, this meant that they bought a policy that they though was fit for purpose.
You can claim PPI compensation directly for bank or lender by writing to them with proof you have a PPI policy; included on this letter should be full details as to why you believe or know you were mis-sold the policy.
Many people buy the professional services of a claim management company, such as Scottish PPI Claims to complete this process for them; why not find out more?