FOS/FCA needs to start making banks and financial cos giving automatic PPI upholds

hildass1

Hi,

I am an experienced PPI complaints handler. I can't say too much as I am currently agreeing a posting with MSE.

Anyway I will post the following for now :

Some banks and financial institutions know what will give an automatic uphold so why should any customer have to raise a PPI complaint in order to get an uphold or redress for a PPI complaint, which the bank knows beforehand will warrant an uphold ?

I have suggested with the FOS/FCA that all financial institutions need to be pro-active in advising customers that they will give an uphold without any customer having to raise any PPI mis-selling complaint. I am sure that Martin Lewis MSE has requested all financial institutions to give automatic upholds (when appropriate) without anyone raising a complaint but as far as I am aware, none have reciprocated.

I have raised this with the FCA and will advise as soon as I have a response.

WatchMan

I think this approach would cause more issues than it would solve.

For instance - some people with policies which would be caught by this type of approach might actually want to keep their policy.

An example might be someone who has PPI protecting their credit card. When they brought the policy, they may have been self-employed and caught by onerous policy terms. Strictly speaking, the policy would've probably been mis-sold. However, what if the policy holder moved into employment and now values the protection offered?

They'd probably be annoyed if their policy was just cancelled and premiums refunded. More so if they'd since developed pre-existing medical conditions - which would make finding alternative cover harder.

Although PPI was widely mis-sold, it isn't necessarily a bad thing to have. That's a big reason why I don't think this sort of approach was put into place. It really is up to people themselves to think about their circumstances and decide whether they want to complain.

[Deleted User]

hildass1 wrote: »

I am an experienced PPI complaints handler.

I'm sure you are

You have made one post still on the forum, but you have apparently started five threads and have one "Thank You"
The only way this is possible is if all your other posts were deleted..

dunstonh

I am an experienced PPI complaints handler. I can't say too much as I am currently agreeing a posting with MSE.

If you were experienced you would know that some types of PPI have low uphold rates and see the majority of complaints rejected.

I have suggested with the FOS/FCA that all financial institutions need to be pro-active in advising customers that they will give an uphold without any customer having to raise any PPI mis-selling complaint.

That would just be foolish. It would create issues where people who willingly bought the product or have benefited from the product or were sold the product correctly would get redress where there is no wrongdoing. You can still buy PPI today. Not as many forms as you used to but standalone PPI and MPPI are still sold and considered viable.

I am sure that Martin Lewis MSE has requested all financial institutions to give automatic upholds (when appropriate) without anyone raising a complaint but as far as I am aware, none have reciprocated.

I doubt he has said that. Your assumption is that the product is bad. However, the whole basis of PPI is the sale process that most of the banks operated for it. Not the product. Although there are some pretty naff versions. But then there are some pretty good versions too.

I have raised this with the FCA and will advise as soon as I have a response.

The FCA are currently in consultation to close the PPI issue. It won't be opened up like you suggest.

Mersey_2

dunstonh wrote: »

The FCA are currently in consultation to close the PPI issue.

2019, surely?

dunstonh

Mersey wrote: »

2019, surely?

That is the deadline. Not the final stage of the consultation. They published an update in August 2016 stating that they believed the proposals in the Nov 2015 consultation should proceed. However, there were some changes added for further consultation in respect of Plevin.

The OP wants to change everything but the FCA has already decided to put an end to it.