MSE News: Banks put PPI claims on hold in defiance of regulator

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

Read the updated stories:

Banks join Lloyds in freezing PPI claims

and

Santander takes consumer side in PPI battle


Also see the original story:

Lloyds puts PPI claims on hold in defiance of regulator

chudiver

Wow.

Surely there must be some misunderstanding... What happens if the FSA terminates their trading license?

marshallka

Defiant and certainly not a good example....

Wrong, wrong, wrong

This is like teaching anyone that does not agree with something that they can take the law into their own hands????

marshallka

chudiver wrote: »

Wow.

Surely there must be some misunderstanding... What happens if the FSA terminates their trading license?

Doubt they would do that, the FSA had a loan of 200million from them!!!!

corbyboy

I am pretty disappointed about this. Just had a letter from Halifax 2 weeks ago saying that they are processing my PPI mis-selling complaint. Guess this is on hold now.

hopefulshell07

No wonder LTSB haven't sent me amy money! They received my acceptance in August but I haven't heard anything from them so far!

di3004

hopefulshell07 wrote: »

No wonder LTSB haven't sent me amy money! They received my acceptance in August but I haven't heard anything from them so far!

Chase them up, to what I am aware of, anything they have upheld they should still continue to pay out.
Good luck.;)

Premier_2

"We know 81% of people who go to the Ombudsman with PPI complaints win. We know there has been systemic mis-selling

Yet only an average of 5% of rejected complainants, across all product sectors, take their case to the arbitrator.

Sounds like there is systemic mis-claiming going on too, if 95% of complainants give up on their claim at the first hurdle, especially when it's free for consumers to complain to the FOS, and all regulated companies will clearly offer this option to the complainant in their response.

NIGELK_3

I am very confused. The banks are seeking a judicial review of the new rules - right? So the High Court is just looking at the moment on whether a judicial review can be granted? That's all? So how on earth Lloyds Bank can use the legal argument when the court is just deciding on if a legal case can be allowed is beyond me! Does this make sense?

marshallka

NIGELK wrote: »

I am very confused. The banks are seeking a judicial review of the new rules - right? So the High Court is just looking at the moment on whether a judicial review can be granted? That's all? So how on earth Lloyds Bank can use the legal argument when the court is just deciding on if a legal case can be allowed is beyond me! Does this make sense?

The thing is they have!!!

proeleche

Premier wrote: »

Sounds like there is systemic mis-claiming going on too, if 95% of complainants give up on their claim at the first hurdle, especially when it's free for consumers to complain to the FOS, and all regulated companies will clearly offer this option to the complainant in their response.

While I agree that some people will make claims purely to see what they can get, a big part of the reason that claims do not always go further is the way that firms deal with complaints.

In my experience, a firm will ackowledge your complaint and tell you they are investigating; depending on how long you have been waiting, you may receive another letter saying they are still investigating. In a lot of cases, if they are rejecting your complaint, you are not told of your option to appeal to the FOS until you have in turn, sent a response to their initial rejection. This is the 2 stage complaint process which was recently criticised on national news and by the FSA.

We must also ackowledge the fact that whistleblowers have repeatedly stated that firms insist on all complaints being rejected in the first instance, in order to save time and resources.

So I would say that while some complaints will be spurrious, the management of complaints needs to be taken into account and we have to remember that not all people are aware of their rights and how to 'exhaust' these different complaints procedures.