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

marshallka

Just found this from 2009

Banks turn down millions in claims


Consumers are being denied millions of pounds in compensation for mis-selling because they are being fobbed off by high-street banks — and the City regulator is failing to help them, a damning report revealed last week.
The Financial Ombudsman Service (FOS) called for the law to be changed to allow US-style class-action lawsuits to help customers get redress, as its annual report revealed that nearly 60% of complaints were going in favour of consumers, compared with a normal level of 30% to 40%.
Consumers must first complain to their bank before taking their case to the FOS, so the figures suggest firms are turning down genuine claims — and the Financial Services Authority (FSA) is failing to act.


The House of Lords economic affairs committee will this week suggest the FSA focuses “more directly” on consumers.
Which?, the consumer group, said: “It’s shameful that some firms are dismissing so many justified complaints. This could be just the tip of the iceberg as many people give up at the first hurdle rather than going to the ombudsman.”
Walter Merricks, the chief ombudsman, told The Sunday Times that a change in the law could help thousands of consumers seek redress. “The current class-action model is that consumers have to opt in, but it doesn’t work where the amounts involved are small,” said Merricks.

http://www.timesonline.co.uk/tol/money/consumer_affairs/article6394865.ece

What has changed from here.... nothing cause now they are not only turning down complaints they are actually turning them away completely without even looking into them.....

marshallka

Here we go... is this anything of relevence to PPI claims

http://citywire.co.uk/wealth-manager/fsa-gains-collective-redress-powers/a439181

FSA gains collective redress powers

The Financial Services Authority (FSA) has been granted the power to force businesses to establish collective redress schemes to compensate consumers and publicise enforcement actions earlier.

The power was created by the Financial Services Act 2010 and activated today along with others changes to the regulator. The FSA will use collective redress schemes where there is evidence of widespread failings following large numbers of claims made to the Financial Ombudsman Service over issues like payment protection insurance.

This is an important new tool for the FSA, which increases our ability to get redress for consumers when firms have not followed our rules,’ said Sally Dewar (pictured), managing director of risk at the FSA. ‘The power would obviously be used proportionately. It is not a substitute for working with industry where there is the potential to bring an issue to a fair and speedy conclusion.’ The FSA has also acquired the power to publish decision notices ahead of final notices, which means that it can publicise enforcement actions rather than waiting for the Financial Services and Markets Tribunal to process appeals.

maxdp

audley16 wrote: »

That is because this website is a consumer action site....not a CMC appreciation thread!

I am sure there are many happy Lloyds customers out there, you just won't find them on this site!

I am a Lloyds customer business and personal and people I am helping most of my claims have been through them so that takes that one out of the equation. 5 Loans and Credit Cards and BLI on Business loans. What is your point.

Would also like you to point us all on here to a CMC appreciation site. That would be fab for us regulars.:)

maxdp

debt55 wrote: »

yes i quite agree, but we must be careful not to tarnish all with the same brush.

that is the overriding line here by me anyway.

clearly any claims comp that does take upfront fees need outing, but then the ones who do not and try to do a good job also need outing.

balanced!

(i am today anyway... a chip on each shoulder )

DOH is that ground down. LOL.

debt55

lets get this back on track...

so ... our mates over at Lloyds... when do they take the egg off their faces and backtrack?

my guess, end of next week.

audley16

I would imagine when Eric Daniels realises he may well be in breach of his responsibilities as an approved person under the FSMA.

marshallka

debt55 wrote: »

lets get this back on track...

so ... our mates over at Lloyds... when do they take the egg off their faces and backtrack?

my guess, end of next week.

My guess tomorrow some statement will be made

debt55

marshallka wrote: »

My guess tomorrow some statement will be made

that would be a massive own goal, would love it if it were true, but i think they may long it out for a week or so.

i did notice a slight change of rhetoric from lloyds today... something along the lines of we are continually talking to the fsa/bba/fos to resolve issues with regards to ongoing complaints...

whereas last night it was more along the lines of we wait until the JR and that is final.

santander... what a bank!

the spanish stole a march on the british elite, brilliant!!

and in doing so, done us the great british consumer a great service.

debt55

maxdp wrote: »

Did you start this thread off. If so you had inside info.

yes i was the first person on this site a few weeks back to report the story, but i got it off mark kleinmans blog on the sky news website

to be fair, i was astonished nobody has already put it up.. and then even more astonished nobody wanted to discuss its importance

marshallka

debt55 wrote: »

yes i was the first person on this site a few weeks back to report the story, but i got it off mark kleinmans blog on the sky news website

to be fair, i was astonished nobody has already put it up.. and then even more astonished nobody wanted to discuss its importance

But things need solid evidence tbf before people will listen. As MSE Guy had not put the story up in the news section no-one would listen.