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MSE News: PPI complaints down, but payday loan gripes soar, says Ombudsman

Former_MSE_Helen
Former_MSE_Helen Posts: 2,382 Forumite
in Reclaim PPI & other insurance
Complaints about Payment Protection Insurance (PPI) have halved, while those about packaged bank accounts have risen...
Read the full story:

PPI complaints down, but payday loan gripes soar, says Ombudsman

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Comments

  • chanz4
    chanz4 Posts: 11,057 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    They should ban complaints from claims handlers, also fine them for wasting time
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • safestored4
    safestored4 Posts: 464 Forumite
    I wouldn't ban them, people are entitled to use intermediaries if they wish, but would require them to make an up front payment of say £500 for each case submitted. If the complaint is upheld this is refunded, if not then it is forfeited. I would also regulate the level of their charges to their clients. A maximum of 5-10% would seem more than reasonable rather than the 20-30% which is often quoted on this site.
  • chanz4
    chanz4 Posts: 11,057 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    but these fishing claims are stopping genuine complaints
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • Alpine_Star
    Alpine_Star Posts: 1,386 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    chanz4 wrote: »
    but these fishing claims are stopping genuine complaints


    How come?


    In the last year 62% of PPI complaints were genuine, which is a higher uphold rate than the average of other products, so if anything it's the volume of genuine complaints which is the problem.
  • Nasqueron
    Nasqueron Posts: 11,715 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Alpine_Star wrote: »
    How come?


    In the last year 62% of PPI complaints were genuine, which is a higher uphold rate than the average of other products, so if anything it's the volume of genuine complaints which is the problem.

    But again that means 38% are not genuine, thus clogging up the system and the delay would be around 1/3 shorter if people weren't sending in fraudulent and incorrect complaints

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

  • dunstonh
    dunstonh Posts: 121,724 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Nasqueron wrote: »
    But again that means 38% are not genuine, thus clogging up the system and the delay would be around 1/3 shorter if people weren't sending in fraudulent and incorrect complaints

    And I don't believe that figure includes the ones that firms reject as no PPI and dont get referred to the FOS. Our compliance company says that around half the PPI complaints dont have PPI. That is without some stupid CMC then referring it to the FOS.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Alpine_Star
    Alpine_Star Posts: 1,386 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Nasqueron wrote: »
    But again that means 38% are not genuine, thus clogging up the system and the delay would be around 1/3 shorter if people weren't sending in fraudulent and incorrect complaints



    It wouldn't be much of a statutory complaints resolution service if they upheld 100% of complaints would it?


    Given the mass mis-selling of PPI the FOS is remarkably efficient. By comparison the small claims court service only manages to resolve 3%-4% of all civil disputes and the win/lose ratio is lower at approximately 50-50.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Tenth Anniversary 1,000 Posts Name Dropper Photogenic
    Howso, At the open day, whilst no fan at the mo, it was intimated the early payday loan customers were 'confused', to put it nicely I was genuinely taken aback to hear that and so walked out after an hour, this service was a joke in 2011/2012 when an insider of the PDL industry even later admitted this was the time they were all at their worst!! so I can only think there is some reason why there is a lot of extra compensation going on... all it has done is been sure to cause more friction... will they acknowledge the word short term loan ever, if I ever have to refer I won't be saying payday loan!
    Interesting how none of the payday loan cases made it into official literature... what do we expect from ex. bankers!! yes it was one insightful day...
    Wonder if the legal ombudsman is having impact? is that as corrupt.
  • join8x
    join8x Posts: 1 Newbie
    an up front payment of say £500 for each case submitted?
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