MSE News: Banks wrongly reject PPI complaints, despite admitting mis-selling

Former_MSE_Helen

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

"Numerous providers wrongly reject complaints, despite banks putting billions aside to pay claims ..."

Read the full story:
Banks wrongly reject PPI complaints, despite admitting mis-selling

starsailor123uk

Simple

Issue them with another fine at 200% of the first one for "Still taking the P**s"

dunstonh

'm surprised that Capital One is so low, particularly as they've been fined before. It also seems from this forum that a lot of people have problems with them.

Is it do with the way they defend maybe?

I suspect that it is because more of theirs are bought direct without the involvement of any adviser/sales rep. If you DIY and buy PPI then its your own choice. Buyer remorse is not grounds for complaint.

monstermuncher

I posted on the other thread as well so deleted this post, now it looks like you're talking to yourself, sorry!

It's just such a huge difference it made me wonder.

larlar_2

Hi, sorry if I'm on the wrong page, this is all a bit new to me. Could anyone answer a quick question for me???

My wife and I took out a 35k business loan with HSBC in 2002 and a 5k personal loan. They made myself and my wife take out critical illness and life insurance policies for the businass loan, sadly my wife got skin cancer in the 1st year so we made a clain on the critical illness cover. HSBC refused to pay and cancelled our policy because they said we never told them about my wifes post natal depression etc during our original meeting with them (even though the adviser told us not to worry about medical history details as they would obtain them from our doctors, so we signed to give them our conscent to do this, the doctors notes were never obtained). Anyway we tried to explain but the gentleman that dealt with us from HSBC lied to the ombudsmun and said the conversation never took place! We got nothing and my wife is still very ill battling 3 types of cancer at once now. Anyway I started to wonder if they had added ppi to the loan so I went to the bank. Our original documents have been misplaced so I asked the bank last week for a copy of our loan agreement. The bank told me they only keep the documents for 7 years and dont have any paperwork? Is this right as the loan has not finished yet? If it is true what proof do they now have that I owe them the money in the first place?

What can i do?

Thanks, Rick.

dunstonh

My wife and I took out a 35k business loan with HSBC in 2002 and a 5k personal loan. They made myself and my wife take out critical illness and life insurance policies for the businass loan

It is not uncommon for banks to insist on these with business clients as a form of security (as the self employed person is a key worker in the business). They are allowed to do this and where it is mandatory, no-mis-sale has taken place.

sadly my wife got skin cancer in the 1st year so we made a clain on the critical illness cover. HSBC refused to pay and cancelled our policy because they said we never told them about my wifes post natal depression etc during our original meeting with them (even though the adviser told us not to worry about medical history details as they would obtain them from our doctors, so we signed to give them our conscent to do this, the doctors notes were never obtained).

Insurance questions are asked for the very reason that it tells them what they need to know. They only go to the GP if you disclose a health issue and they need further information on it.

Anyway we tried to explain but the gentleman that dealt with us from HSBC lied to the ombudsmun and said the conversation never took place! We got nothing and my wife is still very ill battling 3 types of cancer at once now.

Unfortunately, your allegation is a verbal one that is difficult to prove. You could be telling the truth but you may not. It's a he siad/she said scenario. The FOS appear to have decided that there is no evidence to support your complaint.

Anyway I started to wonder if they had added ppi to the loan so I went to the bank.

It is unlikely PPI was added if they requested standalone underwritten insurance. Its usually one or the other.

Our original documents have been misplaced so I asked the bank last week for a copy of our loan agreement. The bank told me they only keep the documents for 7 years and dont have any paperwork? Is this right as the loan has not finished yet? If it is true what proof do they now have that I owe them the money in the first place?

The banks dont tend to destroy documents until the debt has been repaid. So, its unlikely that is the case. It is more likely they couldnt find it on a quick check.

What can i do?

Submit a data subject access report costing £10 and see what appears.

Consumerist

From the article :-

"They must do better if they want to rebuild the trust in the financial services sector."

The banks appear to have no interest whatsoever in rebuilding trust; they are more interested in rebuilding balance sheets, methinks.

magpiecottage

What we do not know, of course, is how many cases were forwarded to FOS before the court case was resolved. Those cases would not have gone back to the banks at that point.

FOS may therefore be upholding cases which if they had been returned to the banks last year would have been upheld anyway.

~Brock~

magpiecottage wrote: »

What we do not know, of course, is how many cases were forwarded to FOS before the court case was resolved. Those cases would not have gone back to the banks at that point.

FOS may therefore be upholding cases which if they had been returned to the banks last year would have been upheld anyway.

You have hit the nail on the head. The banks will be in the process of paying out on these claims which were clogging up the FOS systems. Even without the input of a FOS adjudicator, becasue they are 'in the system' they will now be listed as 'upheld' in favour of the consumer...which is why the main banks all suddenly show as 99%.

This gives an inaccurate impression of what's going on in reality because it seems like FOS has upheld all these complaints when this will not be the case....in fact if you take these cases out you will probably find that actual adjudicated outcomes have changed little since last year.

It is unfortunate that FOS chose to release these figures without a suitable explanation because as usual it gives the anti-bank brigade more excuses to have a go and also allows lazy journalists to turn up their rhetoric without stopping to consider the reasons behind the results.

Never let the facts get in the way of a good story eh MSE?

dunstonh

It is unfortunate that FOS chose to release these figures without a suitable explanation because as usual it gives the anti-bank brigade more excuses to have a go and also allows lazy journalists to turn up their rhetoric without stopping to consider the reasons behind the results.

Never let the facts get in the way of a good story eh MSE?

There was no article on MSE when the FOS recently published that the current uphold rate on PPI complaints had fallen from 92% to 68%.

~Brock~

dunstonh wrote: »

There was no article on MSE when the FOS recently published that the current uphold rate on PPI complaints had fallen from 92% to 68%.

Well there wouldn't be would there?....doesn't sound right when you've got an anti bank agenda to maintain :money: