It is unfair for banks to reject tens of thousands of complaints regarding mis-sold payment protection insurance (PPI) plans. Some of the banks have literally thrown out nine out of ten complains coming from legitimate customers only for the Independent Financial Ombudsman Service to overturn the bank’s decision.
Most of the complaints are about payday loans. The number of complaints tripled to 4,186 for the first six months of the year. The reason is the rising awareness among consumers that they have rights to make complaints. Consumers were encouraged by the recent crackdown on the industry by the City Watchdog.
The city watchdog is also cracking down on PPI claims that gobble up a large portion of the compensation awarded to the consumer. The Ministry of Justice wants a cap on the fees required by claims management firms at 25% of the overall award. Any upfront fees or deals where the payment made to companies to pass on to victims of mis-selling to another company will also be banned.
During the first half of 2016, the Ombudsman has received a total of 91, 381 complaints regarding payment protection insurance that are sold alongside loans and credit cards. Among the worst offenders for rejecting PPI claims include Clydesdale Bank wherein 90% of customers won the cases that were referred to the Ombudsman. Lloyds Bank was second worst at a rate of 78% followed by NatWest at 69%. Other banks include Royal Bank of Scotland at 66% with Barclays and HSBC both at 61%.
James Daley, the managing director of consumer group Fairer Finance is astonished because the PPI problem has been going on for a long time, yet firms still get them wrong. On the other hand, banks are making efforts to improve and correct their mistakes.
Document Collection services include verification of identity, payment protection claims (PPI) and debt management plans. Agents dealing with document collection pay attention to detail and accuracy during the performance of their job. All the completed legal documents including supporting evidences will be collated in legible format before it is returned to the client. This is the most affordable process to kickstart the claims process.