More complex – how PPI cases are becoming more complicated

Payment protection insurance (PPI) is a phrase synonymous with mis-selling, mistrust and greed, as well as huge profits for the bank.

The compensation process has been in full swing from 2011 onwards and although the number of complaints referred to the Financial Ombudsman Service are dropping, it seems that they are changing shape yet again.

Who are the Financial Ombudsman Service?

They are the body that looks at complaints brought to them by consumers about banks, lenders and other financial bodies either about them as organisations, or about the products and service they sell. They don’t just deal with PPI complaints, but all kinds of different cases regarding different financial products.

Can I take my PPI compensation complaint direct to them?

No, you need to approach your bank first with your complaint about why you think you were mis-sold PPI. In the vast majority of cases, the bank resolve the situation to the satisfaction of the consumer, and in the right way. But, this is not always the case.

How do FOS work on PPI complaints?

They deal with complaints regarding PPI in chronological order, in other words, in the date order that they arrive. Although they are working very hard on PPI complaints, they are still receiving 4,000 new cases a week meaning that in order for your case to be resolved, you are looking at around 12 months waiting time. However, it is worth the wait as they are finding in the favour of the consumer in the majority of cases.

Why are PPI complaints to FOS becoming more complicated?

Even though PPI was mis-sold on a huge scale, in some cases, it may not have been mis-sold but, there is such a fine line in these cases, that FOS are looking at everything involved in the case; their thorough investigations, for example, include listening to recorded phone conversations, as well as scrutinising paperwork.

They are finding that;

• Some customers are not being compensated the full amount and this worrying trend has been increasing. As a result, banks are being told to look at some cases again and correct the amount they paid to customers.
• How the product was sold to some customers is also coming under intense scrutiny, especially those sold over the phone. In some cases, it is a fine line between a sales pitch and the customer being advised to take out the policy. Banks argue that they were sales calls but the customers feels that they were advised to take out the policy.

Can Payment Protection Scotland help with my claim?

Claiming PPI compensation with Payment Protection Scotland is a possibility. We are one of Scotland’s premier claim management companies when it comes to PPI. Why not find out why by calling us?

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