PPI Responses post Covid19 27 April 2021 at 10:11AM in Reclaim PPI & other insurance 5 replies 141 views

Fluid123

Is there a deadline for responding and settling upheld complaints post COVID?  Lloyds said in December 2020 I should get to know the outcome of my complaint by March 2021 LATEST, but when I’ve checked end of April as haven’t heard anything, they’ve told me no further lead time, I’ll get to hear, when I get to hear!! 

[Deleted User]

There's no deadline.  The longer it takes, the more you get if it's upheld.

CRACEO

Deleted_User said:

There's no deadline.  The longer it takes, the more you get if it's upheld.

Sadly this is in part wrong. There is a deadline that is imposed on lenders to assess PPI mis-selling complaints, and it's set by the FCA DISP APP rules - it's 8 weeks. 8 Weeks where they have to either uphold or not your claim or write and tell you by what timescale they will do so. 

However, the FCA allowed all lenders to ignore DISP rules in relation to this 8 week deadline in late 2019 after the influx of pre-deadline complaints. So in essence, they can ignore that deadline. 

Whilst it is true that the 8% statutory interest is still being added to an upheld claim  it's not really satisfactory to allow this to drag on as some consumers will change emails, move house, and some will die and the lenders will not pay out on a proportion of these as a result... 

[Deleted User]

CRACEO said:

Deleted_User said:

There's no deadline.  The longer it takes, the more you get if it's upheld.

Sadly this is in part wrong. There is a deadline that is imposed on lenders to assess PPI mis-selling complaints, and it's set by the FCA DISP APP rules - it's 8 weeks. 8 Weeks where they have to either uphold or not your claim or write and tell you by what timescale they will do so. 

However, the FCA allowed all lenders to ignore DISP rules in relation to this 8 week deadline in late 2019 after the influx of pre-deadline complaints. So in essence, they can ignore that deadline. 

Whilst it is true that the 8% statutory interest is still being added to an upheld claim  it's not really satisfactory to allow this to drag on as some consumers will change emails, move house, and some will die and the lenders will not pay out on a proportion of these as a result... 

What zx81 is talking about is the deadline for resolving the case - after 8 weeks you are allowed to refer to the FOS but that is it - as your own point says, they can write and give a timescale - there is no deadline for a resolution as, even if you refer to the FOS, it will join a huge queue and there is a chance the bank will simply stop looking at the case while the FOS looks at it (and the FOS will just go back to the bank). The number of people who die vs the number who have active PPI complaints is undoubtedly tiny and moving house/changing email address has no relevance to this as you can just update the bank when you move house. 

The problem (and the reason for the dissatisfactory service) is the sheer number of chancers and liars who submitted PPI complaints, often spurred on by the CMCs when they knew full well they never had it (I believe from data given by dunstonh previously, as many as 50% of complaints are from people who didn't have it) or took it out willingly and then lied about not knowing/not wanting it, clogging up the system for the genuine miss-sold cases. Not helped of course by lenders paying out so much early on (and auto-payments) to get rid of the backlog. 

brettcta

Deleted_User said:

CRACEO said:

Deleted_User said:

There's no deadline.  The longer it takes, the more you get if it's upheld.

Sadly this is in part wrong. There is a deadline that is imposed on lenders to assess PPI mis-selling complaints, and it's set by the FCA DISP APP rules - it's 8 weeks. 8 Weeks where they have to either uphold or not your claim or write and tell you by what timescale they will do so. 

However, the FCA allowed all lenders to ignore DISP rules in relation to this 8 week deadline in late 2019 after the influx of pre-deadline complaints. So in essence, they can ignore that deadline. 

Whilst it is true that the 8% statutory interest is still being added to an upheld claim  it's not really satisfactory to allow this to drag on as some consumers will change emails, move house, and some will die and the lenders will not pay out on a proportion of these as a result... 

What zx81 is talking about is the deadline for resolving the case - after 8 weeks you are allowed to refer to the FOS but that is it - as your own point says, they can write and give a timescale - there is no deadline for a resolution as, even if you refer to the FOS, it will join a huge queue and there is a chance the bank will simply stop looking at the case while the FOS looks at it (and the FOS will just go back to the bank). The number of people who die vs the number who have active PPI complaints is undoubtedly tiny and moving house/changing email address has no relevance to this as you can just update the bank when you move house. 

The problem (and the reason for the dissatisfactory service) is the sheer number of chancers and liars who submitted PPI complaints, often spurred on by the CMCs when they knew full well they never had it (I believe from data given by dunstonh previously, as many as 50% of complaints are from people who didn't have it) or took it out willingly and then lied about not knowing/not wanting it, clogging up the system for the genuine miss-sold cases. Not helped of course by lenders paying out so much early on (and auto-payments) to get rid of the backlog. 

It was an almost daily occurrence at one point where mr complainant complains on the grounds that he had 12 months full sick pay and then 12 months half in his job as a mechanic but you look at the fact find at the POS and it turns out he gets 2 weeks, so MPPI was recommended. 

Similarly where they’re ‘angry and confused’ that they were sold something they didn’t know about but claimed on it numerous times throughout the life of the credit agreement.

It‘s now ticking over again with Plevin fact finds from solicitors trying to dip their hand in again for people who have either had full payouts previously or, as above, have never had PPI and have been told this repeatedly via every CMC they’ve employed previously.

these are what’s clogging up the system and why even now, 18+ months after the deadline, we’re still seeing big delays all throughout the life cycle of a complaint.

-taff

CRACEO said:

Deleted_User said:

There's no deadline.  The longer it takes, the more you get if it's upheld.

Sadly this is in part wrong. There is a deadline that is imposed on lenders to assess PPI mis-selling complaints, and it's set by the FCA DISP APP rules - it's 8 weeks. 8 Weeks where they have to either uphold or not your claim or write and tell you by what timescale they will do so.

zx was correct. The timescale for a response/decision is eight weeks. There's no timescale for a payout though in the case of an upheld complaint which is what the OP asked about.