As many of us are aware there have been a lot of problems within the United Kingdom of customers being mis-sold payment protection insurance. Steps were taken to enforce rules and regulations by the FSA and also for customers to reclaim their money if they had a valid claim. It was determined that the main culprits of the unfair practices were done by banks.
Recently an alarming report was released by the Financial Services Authority that over 300,000 customer claims which were filed to reclaim a refund on mis-sold payment protection insurance have been denied. It is stated that the banks are not even reviewing the actual claims but just automatically denying them.
This is now causing more of a burden on the Financial Ombudsman Service, as when a customer files the complaint with them, they will then act on the PPI claims for customers that place their case with them. On average the FOS receives approximately 1000 claims from customers who were denied their refund by the banks, and it is said that this is only between 15-20% of the actual amount of customers whom were denied. This means that the banks are getting away with their unfair practices.
If you feel you were mis-sold payment protection insurance you should still file a claim to request a refund for premiums. Of the PPI claims made by FSO on the consumer’s behalf, at least 90% were in favor of the customer. This means, that even if you get rejected on your claim you have very high odds that you were rejected automatically without the bank even viewing the claim.
The consumer that feels they were unfairly sold PPI definitely has a few options to begin a claim. One of course is filing all the paperwork yourself and beginning the process, the second is to find a legitimate company which deals in PPI claims and reclaiming. The differences in the two quite simple – one is free, and one you will only have to pay a fee if the case is settled and you receive compensation (No win – No Pay). Also, one you have to do all the paperwork yourself, whereas the claim specialist will do most of the filing for you.
When you take into consideration that only 15-20% of consumers actually continue their claim once they are denied by the bank and over 90% actually do win when they do pursue the matter, the amount of money the banks are getting to keep is astronomical and outright robbery.