ombudsman very slow

javorb

Very frustrated lloyds tsb are writing to people telling them they have been missold but i have been waiting on ombudsman for nearly 2 years ,lloyds replied to the ombudsman in dec 2012 ,ombudsman has not looked at the response yet .

dunstonh

Very frustrated lloyds tsb are writing to people telling them they have been missold

No they are not. The CCL format is that they inform the person they have had PPI and they they could have been mis-sold. Not that they have been mis-sold.

but i have been waiting on ombudsman for nearly 2 years ,lloyds replied to the ombudsman in dec 2012 ,ombudsman has not looked at the response yet .

Sheer volume of PPI complaints. Probably around half of which are try-it-ons whilst half are genuine.

javorb

dunstonh wrote: »

No they are not. The CCL format is that they inform the person they have had PPI and they they could have been mis-sold. Not that they have been mis-sold.



Sheer volume of PPI complaints. Probably around half of which are try-it-ons whilst half are genuine.

In my eyes this shows how much the financial industry has got away with ripping off customers ,
http://www.theguardian.com/business/2014/feb/03/lloyds-ppi-compensation-bill-10-billion-pounds

dunstonh

Is there an article that shows how much some consumers are ripping off the industry?

katiepyke

dunstonh wrote: »

Is there an article that shows how much some consumers are ripping off the industry?

Maybe "some" have, but not to the tune of £22 billion.

Insider101

javorb wrote: »

In my eyes this shows how much the financial industry has got away with ripping off customers ,
http://www.theguardian.com/business/2014/feb/03/lloyds-ppi-compensation-bill-10-billion-pounds

Logic would have it that if they are paying back £22 billion, this is not getting away with anything.

Realistically, whilst there is no doubt a lot of PPI was systematically missold, only a tiny proportion of those payouts are due to there being clear evidence of wrongdoing. There are a lot of factors other than banks poor sales practices that have led to the size of the PPI bill. These include:

1. A regulator which has got away with imposing retrospective standards on the banks
2. An ombudsman system which costs the banks money even if they are totally innocent and encourages them to pay out regardless of fault on small value cases
3. Ombudsman adjudicators who do not work to the standard of proof required by a court and often uphold cases on little more than guesswork
4. The political and economic background including the growth of "consumer rights" movements, ambulance chasing CMCs and personal financial difficulties which has resulted in every man and his dog trying their luck whether they were missold it or not. It has also resulted in some insolvency practitioners practically forcing people who go into insolvency to make complaints about any PPI they have had whether it was missold or not.

dunstonh

katiepyke wrote: »

Maybe "some" have, but not to the tune of £22 billion.

Many providers are recording around half of PPI complaints dont even have PPI.

No-one comes out of the PPI issue smelling of roses. Regulator knew the sales method for 20 years and allowed it. Then retrospectively applied rules that didnt exist at point of sale. Banks used aggressive sales tactics and lies in a number of cases. Consumers putting in try it on/fraudulent complaints as they have nothing to lose.

Insider101

dunstonh wrote: »

Many providers are recording around half of PPI complaints dont even have PPI.

No-one comes out of the PPI issue smelling of roses. Regulator knew the sales method for 20 years and allowed it. Then retrospectively applied rules that didnt exist at point of sale. Banks used aggressive sales tactics and lies in a number of cases. Consumers putting in try it on/fraudulent complaints as they have nothing to lose.

To which you might add CMCs and insolvency practitioners encouraging, or sometimes forcing, people to put in complaints on the most spurious of grounds. To be fair to the regulator (FCA) it has only existed since 2001 when the old FSA was formed and only regulated PPI from January 2005. Prior to that it was all voluntary self regulation. Therefore, the regulator could not have done much about it before then.

javorb

At the end of the day does the general public get bailed out by the government ? No the banks were bailed out by the people they rip off !!

javorb

Insider101 wrote: »

Logic would have it that if they are paying back £22 billion, this is not getting away with anything.

Realistically, whilst there is no doubt a lot of PPI was systematically missold, only a tiny proportion of those payouts are due to there being clear evidence of wrongdoing. There are a lot of factors other than banks poor sales practices that have led to the size of the PPI bill. These include:

1. A regulator which has got away with imposing retrospective standards on the banks
2. An ombudsman system which costs the banks money even if they are totally innocent and encourages them to pay out regardless of fault on small value cases
3. Ombudsman adjudicators who do not work to the standard of proof required by a court and often uphold cases on little more than guesswork
4. The political and economic background including the growth of "consumer rights" movements, ambulance chasing CMCs and personal financial difficulties which has resulted in every man and his dog trying their luck whether they were missold it or not. It has also resulted in some insolvency practitioners practically forcing people who go into insolvency to make complaints about any PPI they have had whether it was missold or not.

The main thing that this has highlighted is that banks did not have proper and fair practices ,I myself was told by the bank employee ,if you dont take the ppi you wont get the loan ,that is how they sold ppi !!To gain big bonuses

dunstonh

At the end of the day does the general public get bailed out by the government ? No the banks were bailed out by the people they rip off !!

What about all the other industries that have been bailed out over the years or received sweeteners or had their liabilities taken over by the Govt to allow them to be privatised.

Also, most of the banks were not bailed out. One was bailed out because it was pressurised by the Govt at the time to take another over and that turned out to be a bad thing to do. PPI is not a global issue. yet the banking crisis was. However, financial crisis are nothing new. 8 of them since 1956. On average every 7 years.

Consumers have also been bailed out to some extent with record low interest rates. A period when there was no VAT to pay.

The main thing that this has highlighted is that banks did not have proper and fair practices ,I myself was told by the bank employee ,if you dont take the ppi you wont get the loan ,that is how they sold ppi !!To gain big bonuses

Rather than ranting about it, why not try and learn about the issues. It may give you some more balance and help you understand what went wrong. Bank branch staff didnt get big bonuses on the back of PPI. They didnt even get paid for each sale. They did have enormous sales pressure put on them though. Plus, retail bank staff pay is typically low. Much lower than people realise.