About three million complaints about financial products were made in the last six months of 2016 and PPI took most of them according to the City Watchdog. The Financial Conduct Authority indicated about 3.04 million complaints and about £1.9 billion in recompense for assorted financial products including PPI the bank industry had to dealt with.
About 60 per cent of these consumer complaints were about payment protection insurance taking over 514,000 complaints and above. Barclays has been the receiver of most of the complaints from customers, including their mis-sold PPI products.
Barclays has for the first time surpassed taxpayer-backed Lloyds, the biggest mis-seller of PPI. Lloyds only had 28 per cent of the shares of complaints made in the last half of 2016. Barclays received 47 per cent of the total complaints made by consumers.
Despite the announcement of the PPI claims deadline, UK’s banks are still to refund consumers mis-sold PPI policies. All financial institutions and related firms have to resolve PPI complaints until customers are satisfied. Even if the August 29, 2019 PPI claim deadline comes to pass, consumers can still use the Financial Ombudsman Service to file their complaint.
From their latest profit report, UK banks have reached about £37 billion in total recompense for consumers with mis-sold PPI. This is closer to the projected £40 billion banks have to pay for until the end of the mis-sold PPI claims in 2019.
Mis-sold PPI is the biggest financial scandal by the banking industry for decades costing the latter more than £40bn for all the damages they caused customers. However, the FCA still sides with the banking industry by introducing a PPI claims deadline by 2019, much to the disappointment of consumer groups in the country.
The public’s concern over PPI is most consumers have over £3000 paid to banks for repaying their loans, mortgages and other financing in the standards of ASU (accident, sickness, unemployment). But because most consumers were ineligible for the PPI as they were urged to pay for it to ensure their loan applications, they had no use for it and it was a complete swindle from bank employees and banks.
The UK PPI claims deadline could be effective to alert all tech-savvy and TV-watching consumer in their own homes. Consumer groups are better concerned with the elderly, who may not have any avenue of information about claiming PPI except by having an alert from their bank that they possibly have a PPI mis-sold under their name.
Long lines and time-consuming claims processes also invade the public’s concern over payment protection insurance. By 2019, consumers could be struggling to make their claims successful against a backdrop of 3,000 complaints a week from the Financial Ombudsman and bank claims systems clogging with numerous mis-sold PPI claims evaluations.
Banks and financial institutions are advised to ensure consumer rights are properly respected in all cases. However, if banks misadvise on a PPI policy, the consumer has the right to forward their complaint to the Financial Ombudsman Service and even the Financial Conduct Authority for proper rectification of the issue.
When your bank misadvises, consumers could ask the bank for a re-evaluation. If the bank refuses, the Financial Ombudsman can evaluate the complaint and re-forward the complaint against the bank. Most of the time, bank decisions are reversed, likely due to the mismanagement of banks regarding the complaints.
Banks since the beginning of the scandal have always either redressed the complaint without proper evaluation or would reject it outright without proper evaluation. Consumer groups have long complained of banks refusing to invest in proper resource and resource development to facilitate the evaluation of mis-sold PPI claims effectively.
The Financial Ombudsman is likely to return an investigation result by eight weeks, the same span of time that banks should release their own investigation results. The decision of the Financial Ombudsman is final and both parties are to accept its evaluation of the situation, which means consumers must provide all proper evidences that prove they deserve the refund and compensation indicated.
No matter the perfection a system might have, it will always have flaws. The UK PPI claims systems from banks are far from perfect. In fact, they are severely flawed yet the Financial Conduct Authority allowed the industry to set a PPI claims deadline by 2019 for a problem they themselves caused.
Facing this reality, consumers would fare better to make their claim as early as this year to avoid the surge of complaints that would possibly peak in the following year. Banks expect higher numbers of PPI claims because of the UK Supreme Court’s Plevin guidance. All PPI sold with a commission earned by representatives more than half the price of the PPI policy is considered mis-sold.
PPI claims procedures are never easier. It would still be wise to get all billing statements concerning payment protection insurance. Consumers could also fare better with rejected complaints by forwarding the failed complaint to the Financial Ombudsman, who evaluates and finds seven out of ten complaints to be valid against bank judgment.
The UK PPI deadline is on August 19, 2019. While many assume hundreds of complaints would still exist after the deadline, banks would possibly reject complaints to the best of their abilities. It saves the money from recompensing consumers or possible challenging complaints through expensive litigations. Both the government and industry are blank towards any possible solutions to these issues.