PPI Letter is it Random?

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andrew71
andrew71 Posts: 1,227 Forumite
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in Reclaim PPI & other insurance
We've had a letter from our bank saying we maybe owed PPI from a loan we took out with them a few years back. I personally can't see how we could be owed it as I was not working at the time due to ill health though say that, the loan was in my wife's name.

Just curious to know have banks sent out PPI to every single person who've taken out loans with them or just the one's who may be entitled to PPI?

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  • Nasqueron
    Nasqueron Posts: 8,933 Forumite
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    Andrew

    The banks are sending these letters to everyone who had PPI inviting them to make a complaint if they feel they have one. This is to allow them to apply the 3 year "time bar" rule in the future i.e. you were made aware and had a chance to complain at the time.

    The letter simply confirms you had PPI on a loan and if you have complaint reasons you can do so.

    No-one is "entitled" to PPI refund though
  • Placida
    Placida Posts: 240 Forumite
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    andrew71 wrote: »
    Just curious to know have banks sent out PPI to every single person who've taken out loans with them or just the one's who may be entitled to PPI?


    Hi, Banks have been sending these letters to customers they have identified as being at high risk of being mis sold PPI but who have not yet complained. They are not sent to everyone who has had PPI.

    They are actually upholding around 90% of the PPI complaints that are made in response to these letters, compared to around 65% for other PPI complaints.
  • Nasqueron
    Nasqueron Posts: 8,933 Forumite
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    Placida wrote: »
    Hi, Banks have been sending these letters to customers they have identified as being at high risk of being mis sold PPI but who have not yet complained. They are not sent to everyone who has had PPI.

    They are actually upholding around 90% of the PPI complaints that are made in response to these letters, compared to around 65% for other PPI complaints.

    Do you have a source for these figures or any proof of this claim?

    People on this forum have received letters about PPI even after they have claimed it back
  • Placida
    Placida Posts: 240 Forumite
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    Nasqueron wrote: »
    Do you have a source for these figures or any proof of this claim?

    People on this forum have received letters about PPI even after they have claimed it back

    Indeed I do. The FCA and a CCL

    I could ask the same of you especially where you claim

    "The banks are sending these letters to everyone who had PPI inviting them to make a complaint if they feel they have one."
  • Nasqueron
    Nasqueron Posts: 8,933 Forumite
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    edited 29 October 2014 at 5:39PM
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    Placida wrote: »
    Indeed I do. The FCA and a CCL

    I could ask the same of you especially where you claim

    "The banks are sending these letters to everyone who had PPI inviting them to make a complaint if they feel they have one."

    I am not making claims about statistics or suggesting a letter has more weight though, simply stating a logical assumption that the banks can use the 3 year rule on miss-sales to stop any more PPI complaints.

    CCL = claims company? Dubious at best given their job is to encourage everyone to claim (via them of course)
    FCA = don't deal with consumer complaints about PPI?

    Do you have any FOS (the financial ombudsman) figures about PPI complaints being more successful after the letters were sent given they do publish statistics on PPI claims?

    Can you also provide this evidence that you have quoted?
  • dunstonh
    dunstonh Posts: 116,534 Forumite
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    edited 29 October 2014 at 6:45PM
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    Most banks are sending out CCLs now and the only criteria is whether there was PPI or not. It isnt targeted based on any risk assessment in general but there may be some banks that have taken that approach.

    CCL = Customer Contact Letter
    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.
  • Placida
    Placida Posts: 240 Forumite
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    edited 29 October 2014 at 6:15PM
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    Nasqueron wrote: »
    I am not making claims about statistics or suggesting a letter has more weight though, simply stating a logical assumption that the banks can use the 3 year rule on miss-sales to stop any more PPI complaints.

    I stated 2 facts not claims. I don't believe I suggested anything
    Nasqueron wrote: »
    CCL = claims company? Dubious at best given their job is to encourage everyone to claim (via them of course)

    CCL=Customer Contact Letter?
    Nasqueron wrote: »
    FCA = don't deal with consumer complaints about PPI?

    I don't believe I said they did
    Nasqueron wrote: »
    Do you have any FOS (the financial ombudsman) figures about PPI complaints being more successful after the letters were sent given they do publish statistics on PPI claims?

    I stated my source was the FCA.
    Nasqueron wrote: »
    Can you also provide this evidence that you have quoted?

    As I said previously I can
    FCA August 2014 "Firms are upholding around 90% of the PPI complaints that are made in response to these mailings, compared to around 65% for other PPI complaints. This indicates that the letters are effectively targeting high-risk customers. As a result, an even more significant proportion of monthly redress was paid in 2013 and to date to consumers who had responded to firms’ contact letters, as Figure 7 shows."

    Do you have evidence that CCLs were sent to all consumers who had PPI?

    The FCA also stated
    "The Parliamentary Committee on Banking Standards (PCBS) recommended in June 2013 that the FCA should urgently consider again the case for requiring firms to send contact letters to allcustomers they can identify as ever having been sold PPI to explain potential mis-selling issues and potential detriment. The PCBS felt this approach would help reach as many consumers who may have been mis-sold PPI as possible and give them chance to seek redress, but also serve to help bring the PPI issue to a close (by triggering in recipients ‘constructive knowledge’ of potential issues with their PPI purchase and thus the start of the three-year time limit for complaining that is set out in our rules).
    As noted in Chapter 7, firms are already mailing a large number of high-risk customers in a similar but more targeted way. Our current view is that, at this advanced stage in the PPI redress exercise, making rules to require firms to send out untargeted communications to all identifiable PPI customers (other than those excepted by the PCBS) may be disproportionate and could involve disruptions for consumers and practical difficulties for firms.
    However, we continue to consider the PCBS’s recommendation in light of firms’ ongoing progress with their mailings and the wider trends in complaint volumes, and we will respond to the PCBS with our definitive view later in 2014.
  • dunstonh
    dunstonh Posts: 116,534 Forumite
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    As I said previously I can
    FCA August 2014 "Firms are upholding around 90% of the PPI complaints that are made in response to these mailings, compared to around 65% for other PPI complaints. This indicates that the letters are effectively targeting high-risk customers. As a result, an even more significant proportion of monthly redress was paid in 2013 and to date to consumers who had responded to firms’ contact letters, as Figure 7 shows."

    Some firms are reporting as many as half of the PPI complaints dont even have PPI. So, I suppose its only natural that the CCL responses have a higher uphold rate if you take the try-it-ons out of the equation. Plus, you dont get the messy claims company templates in there either and sometimes they can do more damage than good. For those firms that are using a targeted method, then a 90% or so uphold rate would make sense.
    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.
  • Insider101
    Insider101 Posts: 1,062 Forumite
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    No one-size-fits-all answer to this. From personal knowledge, some firms are writing to everyone for the reasons Dunstonh sets out. Others are only writing to those who they have identified as possibly affected. There's no real right or wrong way of doing it. The whole thing is a legitimate matter of commercial judgement.
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