| Financial Regulators, PPI

can your bank ask you to return ppi compensation

Several unresolved complaints regarding the mis-selling of Payment Protection Insurance (PPI) are still dominating the in-tray of the Financial Ombudsman Service (FOS).

The regulatory body has received nearly 150,000 fresh complaints in all in the past six months up to last December. More than half of them-that is around 78,000- were regarding PPI policies, the sale of which has been largely barred for a particular period of time.

The Ombudsman has been dealing with complaints, especially the ones that financial firms have not been able to settle by themselves. As per Caroline Wayman, the head of the body, “Payment Protection Insurance complaints have gone down, but still there are certain suggestions that this could perhaps be the deep breath before the plunge.”

A time bar of August 2019 has been set by the Financial Conduct Authority (FCA) for disgruntled consumers so as to make compensation claims to their respective credit card lenders and banks regarding the mis-sold PPI policy. Along with the time bar, the FCA has decided to conduct a public awareness campaign.

Ms Wayman further added, “The FCA’s proposal along with the PPI time bar is expected to deeply influence our complaints volumes.”

Millions of customers have already been paid their compensation following what is considered as one of the banking industry’s largest scandals. In excess of £40bn have been set aside by the banks in order to makethe payouts and the related overhead expenses of processing claims and it’s broadly alleged that many more complaints may possibly come forward.

The entire compensation process hasn’t been that smooth for consumers though. Since 2003 more than one and a half million customers have been disgruntled with the PPI proposals, which were made to them or the outright denial of their claims, which have afterwards gone to the Financial Ombudsman Service.

In the second half of the previous years, roughly half of the PPI complaints made to the Ombudsman had been upheld alongside the top ten most criticised about businesses. Nevertheless, the uphold rate varied wildly between the lenders, from 9% for Nationwide to 29% for Bank of Scotland and around 69% for Financial Insurance Company Ltd, which was a part of the AXA group.

The list of most criticised about businesses for every sort of complaint to the Financial Ombudsman Service is still being subjugated by some of UK’s High Street banks as well as credit card providers.

Topping the list was Bank of Scotland, a part of Lloyds banking group, with roughly around 20,000 fresh complaints against it. This was followed by Lloyds bank, Barclays, HSBC, NatWest and some of the credit card firms, like Capital One and MBNA, Santander and the Nationwide building society.

Check now for FREE
Share this post: