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MSE News: Banks accused over PPI delays

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MSE News: Banks accused over PPI delays

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
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MSE_GuyMSE_Guy MSE Staff
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I've been Money Tipped! Newshound! Chutzpah Haggler
edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
This is the discussion thread for the following MSE News Story:

"A record number of PPI mis-selling disputes must be resolved this year, as banks have subjected customers to 'delays' ..."
Read the full story:
Banks accused over PPI delays


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Replies

  • beamerguybeamerguy Forumite
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    It has been very clear that banks have delayed payments with excuses, fob-offs and worst of all .... passing the buck back to the FOS.

    That is why the FOS is now bogged down with complaints.

    The FOS should just do a blanket "upheld" against the banks which would clear the backlog quickly and teach these thieving banks a lesson.
  • edited 6 January 2012 at 12:16PM
    dunstonhdunstonh Forumite
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    edited 6 January 2012 at 12:16PM
    I think it is an easy accusation to make but it is pretty obvious that the banks are suffering with an unprecedented volume and it is that which is NOW the cause of delays.

    The Financial Ombudsman Service may say it's "disappointing" a significant number of consumers are still waiting for businesses to clear up their cases. However, they themselves are suffering from similar delays due to volume.

    One thing that should help is the proposal announced today that PPI complaints should carry an additional £350 charge if referred to the FOS from April 2012.
    The FOS should just do a blanket "upheld" against the banks which would clear the backlog quickly and teach these thieving banks a lesson.

    That would be unfair on the banks that are not suffering delays or the firms which are not banks and may get the odd PPI complaint. An IFA I know had a PPI complaint recently and he didnt even recommend PPI and the person didnt have PPI. The claims company that generated it still took it to the FOS. Your proposal would see that complaint upheld against that IFA despite no wrong doing.
    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.
  • grastaffgrastaff Forumite
    102 posts
    Delays due to backlogs are understandable and I think most would sympathise. However when banks such as LTSB are paying out on relatively new claims before they settle payment for older claims and continually give excuse after excuse for delays this is inexcusable and something should be done about this.
  • src007src007 Forumite
    420 posts
    The banks have actually improved their time keeping since the judical review in terms of issuing decisions. In 2010 it would be normal for them to take 3-4 months to issue a final response, when 8 weeks was required.

    MSE keeps on with this ''28 day rule'' for issuing redress. I've never heard of this.

    The FOS would probably love to do blacket upholds against the banks as they have 80,000 PPI complaints in their office. However they are set up by law to resolve individual complaints and have to look at each on its own merits.

    The interesting thing that came out today is that the banks are stealing FOS adjudicators because they can offer better salaries. They get all the training for free from the FOS and this also gives them a better chance of rejecting complaints because they have more inside knowledge about how the FOS work.

    Saying this there is no excuse for delays however high the volumes. One major bank (that gets as many complaints as any other) deals with PPI complaints all within 8 weeks and often within a week (sometimes a day).

    This shows that they can do it if they want to.
  • tifotifo Forumite
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    My PPI claim has been ongoing since July 2011 and still the bank hasn't responded. They were quick to decline my claim for default charges on the same account. The FOS say "refer it to us" but i'd rather wait a few more months for the bank than a few years with the FOS (my last PPI claim with them took 2.5 years).
  • edited 8 January 2012 at 8:56AM
    gethrogethro Forumite
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    edited 8 January 2012 at 8:56AM
    My claim was started in Dec 2010,Lloyds kept me waiting until August then told me they couldn't find evidence of PPI on the loan and this claim was over as far as they were concerned.
    I wrote back pointing out that the PPI was on a credit card and enclosed copy of the statements,I gave them several weeks to respond and after getting no reply in sept i refered it to the FOS,I had a letter from them in dec 2011 informing me that due to the back log and as Lloyds had not offered me a refund they would look at it within the next 3 months.
    So i am expecting a letter in March which will be 15 months after i opened the dispute,i expect it will say that it will be investigated in the next 3 months or Lloyds have refused to pay out :(
  • SIMNZSIMNZ Forumite
    1 posts
    My PPI claim started in Feb 2011 with Halifax and onto the FOS in May 2011. I got a letter from FOS in June explaining they have a large number of cases and it may take 3 months to go any further. I've checked with the FOS this week and they said it's with their PPI team (they've contacted Halifax) and planned to be with an adjudicator in 2-3 months.
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