By the time you submit your PPI claim to your bank, people from their claims resolution department would pick up your complaint and process it. The slowdown of the process is due to the obvious de-prioritisation of complaints most banks and financing firms do when it comes to payment protection insurance.
Banks would take one of the two options available to them. One option is to outright reject the claim and hope that the complaint itself is incomplete as per judgment by the Financial Ombudsman Service. A second path is to just recompense the complaint despite the validity of the complaint — which is not the best option for banks but it is the least expensive because the bank will not have to pay FOS administrative fees per complaint it receives.
Banks and financing firms have no way to simplify their own complaints process and instead focuses on recompensing enough consumers to make the problem of PPI mis-selling disappear quick enough that banks may recoup their losses from refunding PPI policies. The flawed processing system of PPI complaints had made it impossible to resolve payment protection insurance without a PPI claims deadline and had helped contribute £40bn in total for PPI refunds.
The only resolution could be the Financial Conduct Authority’s sanctioned PPI claims deadline — or it may only encourage more consumers to make a claim. Without encouraging banks how to simplify the claims process especially on their end of evaluating and judging a complaint properly, the problem of PPI definitely goes beyond the appointed deadline.
The FCA had approved the £42m bank-funded advertising campaign three weeks ago to be spearheaded by M&C Saatchi in creative development. While Claims Management Companies have long spread word about PPI claiming and the actual claims process, the FCA’s camppaign may primarily focus on those who have yet to make a claim or are confused as to where to begin with the PPI claims process.
The FCA will likely use targetted advertisements from Google, specifc for every location. These advertisements may talk about recouping all your billing statements and presenting it through a call or letter addressed to your bank. It is also likely to discuss claim result concerns with the FOS once finished.
Social media and heavy image-oriented guides may also surface in the next few years before 2019. Infographics — a great medium for most guides — may be useful for those who may find difficulty understanding the PPI claims process and rejection of valid complaints by banks. Videos are likely medium as well — useful for elderly claimants who may not be too tech-savvy.
The FCA intends to use the PPI claims awareness campaign as a dedicated public service announncement to justify the impending PPI deadline by June 2019, as proposed. However, the FCA has yet to approve the deadline, giving banks cold comfort. The regulator cited it is still evaluating all results of its consultation with banks and consumers.
UK consumers find making a PPI claim not as simple as it could look. Most would advise that they need to have all their billing documents together and they could simply ask bank assistance to collect their entire record from six years in the past. But it does not often work as simple as described.
Banks would reject or delay claims without notice. The time the consumer’s letter took up in the queue had been wasted but the long claim line in the Financial Ombudsman Service is another line. A 7 out of 10 favourability towards consumers is no guarantee that the claim can succeed — it could have been if consumers had more time off from work to make a claim.
The best way to ensure one has a mis-sold PPI claim is to call a claims management company. Contrary to popular belief and media portrayal, legitimate claims management companies such as HaveIGotPPI.org.uk exist. A good CMC would not charge an upfront fee or ask for a partial fee regardless of the PPI claim’s result.
CMCs will not pester consumers; instead, they would present themselves with an informative website and a PPI calculator to help consumers calculate the total APR, PPI compensation and complete refund they could receive from their offending bank. Do not trust “cold calls,” instead, ask friends and colleagues who may have used the services of better claims management companies to ensure results.
The FCA has reportedly cleared a chunk of the £42.2m bank-sponsored public service announcement funds to M&C Saatchi who would handle the development and promotion of the PPI deadline possibly in June 2019. In a freedom of information request, Saatchi will receive £444,413 payment for its initial campaign strategy and creative development work undertaken according to the Financial Conduct Authority.
The FCA confirmed the earlier allocation of funds for both M&C Saatchi and Manning-Gottlieb OMD of £42.2, which would cover any further media campaign buying activity.
The campaign to raise awareness regarding payment protection insurance claims raised funds throuhg a levy on 18 banks who had 100,000 complaints reported from August 1 2009 to August 1 2015.
The FCA intends to use the advertising campaign to raise awareness for PPI, much to the disappointment of consumer groups who believe the FCA is siding with the financial industry. The banking industry is also disappointed due to the push-back of the deadline from 2018 to 2019.
According to UK consumer lobby group Payback Time, consumers could lose out to £23bn more in PPI claims when the FCA pushes through with the deadline. The lobby group used ongoing trend data from banks allocating £1bn on a quarterly basis for insurance policy refunding.
One of the reasons for the banking industry’s enthusiastic want of a PPI claims deadline is not only the possible £20bn they can save — speculated by lobby group Payback Time — but their capability to finally rebuild their capital according to the FCA’s terms. Discussions between the banking industry and the regulator may likely have circulated around new methods to motivate employees sell payment protection insurance according to usefulness and a further transparency on services and management.
PPI claims is the UK’s biggest financial scandal spanning a decade of insurance mis-selling that brought in a guaranteed £2bn to banks in profit per annum. Encouraging the FCA to go with its planned June 2019 deadline could help banks recover their capital in a shorter span of time. With the pound sterling weak, consumer goods in the UK are likely to inflate due to consumers holding back spending.
This means banks can see a shortfall of loans and mortgages — their primary source of income. PPI itself is still a product of bad association. Lloyds, backed by taxpayers since the Financial Crisis, may find itself in troubled waters due to the possible PPI deadline extension. The bank has already set aside £17bn to repay consumer PPI claims, the highest contributor in the collective £40bn scandal.
Payment protection insurance is the UK’s biggest scandal with over £40bn in refunds to consumers. However, the Financial Conduct Authority might approve a proposed June 2019 deadline despite tremendous displeasure by consumers and consumer groups. Payback Time, a campaign group, believes the deadline could save the banking industry £20bn more to repay consumers in the near future.
Don’t forget to make a PPI claim this early. Once the PPI claims deadline sets in, consumers can expect longer lines and troubling consumer service. The service from claims centres is truly bad currently but under pressure, it could prove troublesome — including the re-evaluation process by re-submitting to the Financial Ombudsman Service.
To make your claim immediately, collect all your billing statements and assess whether you were truly mis-sold PPI. The billing statements and receipts contain the evidence that you have purchased PPI without your consent. If you lack documents, you could use a Data Access Request to collect all your repayment data from your bank — for a fee of £10 on average.
Supporting documents may be needed to prove your ineligibility — such as medical documents for existing medical conditions, an unemployment/termination certificate from your former employer for unemployment or a business employment permit for those who are self-employed.
PPI refunds from your bank must contain your total refund, your PPI compensation of 10% and all the APR additions you have made in the number of years you have paid for the PPI policy. If the bank refuses your claim for any reason, re-submit your claim to the Financial Ombudsman.
In Money Marketing’s list of the UK’s biggest fines the Financial Conduct Authority has issued, payment protection insurance earns the biggest ones in 2016. This is the fine of CT Capital Limited of £2.4m as part of its foul activity regarding payment protection insurance. The umbrella group representing several lenders and loan brokers faced the huge fine for its maltreatment of consumer complaints
According to the money tips and news website, CT Capital had sold about 31,000 PPI policies in 2005 and 2008 and profited about £63m in commission. According to the FCA, the 6,660 PPI complaints from May 2011 and November 2013 could have been crucial as CT Capital has used 11 months to make teh changes to its processes to ensure they comply with current PPI complaint rules.
Currently, the UK banking industry has about £40bn earmarked for mis-sold PPI with over £20m returned to consumers. PPI is said to have been mis-sold since the 90s alongside mortgages for existing properties.
The FCA’s PPI deadline has yet to be final after it said its consultation with banks and consumers is still undergoing evaluation. Banks are opting for the pre-announced June 2019 deadline but campaign groups for consumer rights such as Payback Time said banks are likely saving about £20bn from repaying consumers their refunds by evading their responsibility through a deadline and using countrywide investors as their excuse.