Turning a blind eye to the growing number of scammers in PPI claiming has given claims management companies a bad identity. The rise of these fraudsters has been due to the then-Financial Services Authority’s stringent PPI claims process and measures against banks.
Financial Times Money Management Editor Jon Cudby said the FSA, along with its successor the FCA, were only focused on speeding up the claims process rather than integrating fairness and proper legal procedure.
Bank employees, to whom the entire scandal rests upon, are “guilty until proven innocent.” Banks with insufficient time and resources to supply a proper investigation into claims would outright reject them as Lloyds would or would rather pay the refund despite the claim for refund being factual.
The same case for banks is happening for packaged bank accounts. Many customers have consulted with their banks and some have earned their PBA refunds despite Financial Ombudsman warnings that the products are “quite useful” for many.
The lack of proper legislative support for banks had given rise to a multitude of scammers who had taken more than £5 billion from banks refunding PPI.
Cudby pointed out the then-FSA’s failure to act had resulted to the endless number of PPI claims in the country.
However, consumer groups said the PPI deadline is not overdue. They debate that banks have failed to accommodate the situation of legal investigation and refund into a quick process. Without simplifying the process, they deem the FCA-declared PPI deadline unfair to consumers.