Is it common for banks to lie when asking for PPI back?

Alpine_Star

Nasqueron wrote: »

I am not defending them, I am holding the CMCs to the same standards you hold the bank to.

The bank lied, they were caught and paid a fine.

A CMC submits a claim for miss-sale stating

Mr/Mrs X did not know they had PPI
Mr/Mrs X were told they had to have PPI to get the loan

This is clearly a lie as the two parts contradict each other.

So where is the fine for the CMC?

You can't hold CMCs and banks to the same standards. Banks are unique in that they enjoy an enormously privileged position in the UK by having their very existence underwritten by society regardless of their behavior and as such their standards should necessarily be higher.

HAL_9000_2

Alpine_Star wrote: »

You can't hold CMCs and banks to the same standards. Banks are unique in that they enjoy an enormously privileged position in the UK by having their very existence underwritten by society regardless of their behavior and as such their standards should necessarily be higher.

...and the vast majority of CMCs operate in a legal hinterland, with extremely dubious business models, treating their customers with contemp and viewing them merely as cash cows.

Marty...

Nasqueron

Alpine_Star wrote: »

You can't hold CMCs and banks to the same standards. Banks are unique in that they enjoy an enormously privileged position in the UK by having their very existence underwritten by society regardless of their behavior and as such their standards should necessarily be higher.

They are underwritten because of the total chaos that would happen if they went under - how would people cope losing all their savings, having no access to money, unable to be paid or pay bills?

CMCs routinely bend the truth, lie, submit contradictory stories, take on cases where someone was in debt or even bankrupt and then bill them for a cut of a refund the person never received etc. Banks ARE held to a high standard hence the masses of fines totalling billions of pounds for wrongdoing when they get found out, as well as being held responsible for actions by the FOS long before the FOS regulated them - complaints against banks going back to the 90s or even 80s can still succeed. CMCs operate in their own little world and only became regulated this year allowing them to operate with impunity, robbing the victims of the miss-selling scandal

Alpine_Star

Nasqueron wrote: »

They are underwritten because of the total chaos that would happen if they went under - how would people cope losing all their savings, having no access to money, unable to be paid or pay bills?

CMCs routinely bend the truth, lie, submit contradictory stories, take on cases where someone was in debt or even bankrupt and then bill them for a cut of a refund the person never received etc. Banks ARE held to a high standard hence the masses of fines totalling billions of pounds for wrongdoing when they get found out, as well as being held responsible for actions by the FOS long before the FOS regulated them - complaints against banks going back to the 90s or even 80s can still succeed. CMCs operate in their own little world and only became regulated this year allowing them to operate with impunity, robbing the victims of the miss-selling scandal

Why banking is underwritten is irrelevant to the consideration that they are.


The FOS do not regulate anyone, they have no powers to. They are a statutory complaints resolution service created by Parliament through FSMA. CMCs have been regulated since 2006 as required by the Compensation Act. You're getting confused with the Legal Ombudsman who, again, is not a regulator.


Is that clear enough for you?

Alpine_Star

HAL_9000 wrote: »

...and the vast majority of CMCs operate in a legal hinterland, with extremely dubious business models, treating their customers with contemp and viewing them merely as cash cows.

Marty...

You could argue the same for banks.

magpiecottage

Alpine_Star wrote: »

You could argue the same for banks.

I agree - but, as I say, at least their regulator actually acts on misconduct.