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

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Former_MSE_Guy
Former_MSE_Guy Posts: 1,650 Forumite
I've been Money Tipped! Newshound! Chutzpah Haggler
edited 13 October 2010 at 2:14PM in Reclaim PPI & other insurance
This is the discussion thread for the following MSE News Story:
«13456794

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  • chudiver
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    Wow.

    Surely there must be some misunderstanding... What happens if the FSA terminates their trading license?
  • marshallka
    marshallka Posts: 14,585 Forumite
    edited 11 October 2010 at 8:19PM
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    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
    marshallka Posts: 14,585 Forumite
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    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
    corbyboy Posts: 1,169 Forumite
    First Anniversary
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    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
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    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
    di3004 Posts: 42,579 Forumite
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    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.;)
    The one and only "Dizzy Di" :D
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    Combo Breaker First Post
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    "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.
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • NIGELK_3
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    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
    marshallka Posts: 14,585 Forumite
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    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
    proeleche Posts: 137 Forumite
    edited 12 October 2010 at 10:35AM
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    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.
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