According to the Sunday Post, it has uncovered that banks are finding it difficult to refund every single PPI they mis-sold to consumers. Procuring data from a UK thinktank, they said banks continue to use the “excuse” of “not finding the applicant’s PPI details” when dealing with consumer PPI claims.
The Alliance of Claims Companies shows in its data that lender Blackhorse has increased its use of this excuse by 80% in April compared to the 0% this excuse was used early January.
Other banks have begun to reject consumer complaints for the same excuse past August 2016.
ACC Chief Simon Evans said there is “no doubt this is just the latest delaying tactic the industry has come up with” and that this information indicates the UK’s banks are finding it difficult to repay consumer refunds.
This comes as pessimistic news following the FCA’s positivity that the PPI claims deadline set on August 29, 2019 would work. FCA Chief Andrew Bailey said a deadline would urge consumers to make a claim. This information indicates consumer groups were correct; that banks and lenders have yet to improve their PPI refund investigation and services.
The ACC is a representing body of different UK claims management companies (CMC) all opposed to the PPI claims deadline. Mr Evans said their members do not charge upfront fees and it is not in their “economic interest to submit claims without any chance of succeeding.”