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Banks Likely To Add £500m Further To Current PPI Bill

The UK’s biggest insurance fiasco has yet to see its end until the City watchdog’s appointed deadline; analysts expect banks to add more than £500m to the enormous bill of £30bn for mis-sold payment protection insurance.

Lloyds, the biggest mis-seller of PPI, is likely to announce adding a further £200m to its total PPI bill, which could reach £18bn, more than half of the UK total. Analysts also expect HSBC and RBS to announce top-ups to their respective PPI bills.

Following the Financial Conduct Authority’s PPI claims deadline announcement, consumer claim numbers grew in size. According to the Association of Claims Companies (ACC), banks faced with shocking claims figures have employed rejection and delaying tactics. The ACC said banks who used the excuse of “missing consumer files” against consumers with legitimate complaints increased in number since April.

The City watchdog believes its decision to put in place a PPI deadline by August 29, 2019 is enough time for consumers to make a complaint and receive all their refunds. However, consumer groups find it unfair that the banks’ claims processing procedures are still lacking fluidity and fairness. The FCA responded by announcing the final rules and guidance for banks regarding PPI before the announced deadline.

Three Things To Consider Before Hiring A PPI Claims Management Company

A PPI claims company would never force its services on their customers. Force is defined here as unsolicited text messages or calls to action that you receive on your mobile phones encouraging you to make a PPI claim.

Half of the UK’s consumer public is possibly mis-sold a PPI policy worth £2000-3500. However, the exchange of mobile phone number databases between scammers and underperforming PPI claims companies would sometimes include by accident, phone numbers of high school to college students.

When hiring a PPI claims company, never hire those who text you, instead, look for these.

Only Has A Website

Any company would need to advertise itself in some way. It may appear in social media. It could have its own website. The thing is, it only shows you itself and presents itself as a solution. The CMC must not shove its service against you.

Under a Contingency Basis

If they cannot win your case, they cannot get paid. No win no fee claims management companies offer this arrangement if they agree to being fair to their consumers.

Capable Of Finding Forgotten Account Numbers

A data access request is available for anyone. However, for CMCs, this is a part of their service to ensure that they could handle your claim precisely and refund you accurately.

The PPI Mis-Selling Saga So Far: Banks Still Struggling To Repay, Elderly Claimants At Risk

Consumer groups have advocated against the Financial Conduct Authority’s implementation of a PPI claims deadline at any time because the City watchdog and the banking industry need to create a system that would inform and make it easier for the elderly and disabled possibly mis-sold PPI to claim their refunds.

Elderly mortgage and personal loan customers are at risk of losing their refunds because of the PPI claims deadline. The FCA’s proposed “consumer communications campaign” only focuses on television and Internet advertisements. Generations above millennials and baby boomers are not too tech-savvy, and CMCs are likely to take up the slack to process elderly customer’s mis-sold PPI refunds.

Almost all UK consumers with mis-sold PPI are likely to find their repayments delayed. According to the Association of Claims Companies, which represent legitimate CMCs, data collected from their managers responsible for consumer PPI claim processing report banks increasing their use of an alibi regarding missing consumer details.

The ACC compared its April 2017 data back to its June 2016 data. The data indicated that almost all banks had never used the alibi until it had a sudden spike on March and April 2017, a few months after the announcement of the FCA’s PPI claims deadline.

ACC CEO Simon Evans said banks are likely unable to pay their consumers at the time to use an alibi extensively. The ACC noted Blackhorse, a motor financing company, for jumping from 0% to 80% from January to April 2017 in using the alibi.

Banks Find Difficulty Repaying All PPI Complaints; Still Number One Customer Issue

Data from a claims management company representing body’s investigation shows banks and lenders are still unfair in making their PPI refund decisions despite the announcement of the UK’s PPI deadline. PPI remains one of the most-complained about products in the United Kingdom next to flights.

According to the Alliance of Claims Companies (ACC), UK’s banks and lenders continue to use the alibi of “missing consumer information” from an immense drop in 2016 to a huge increase by April this year.

High-street banks including HSBC rejected only 6% of complaints using this alibi. The figure has increased to 42% for the bank in April this year.

Motor financing firm Blackhorse, which had also mis-sold PPI to its consumers in the past, had used the alibi only from February this year. From August 2016, the firm has never used the excuse for every PPI claim it had received.

According to ACC CEO Simon Evans the figures are indicative that firms are trying to “wriggle out” of ending mis-sold PPI with minimal expenses, refunds rightly deserved by their ripped-off consumers. He said the organisation is not shaming the banking industry for the benefit of their represented, but rather the organisation intends to expose the misgivings of banks despite the upcoming PPI claims deadline in 2019.

According to This Is Money, 262,000 complaints in the online complaints tool Resolver are about payment protection insurance. This is seconded by air flights and packaged bank accounts, which have 211,000 and 155,000 complaints respectively by April.