Banks could be named and shamed over PPI complaints
Later this year the Financial Ombudsman Service is set to announce individual figures for banks and financial institutions with regards to the level of complaints each ash received about PPI or Payment Protection Insurance.
It is thought that a number of major High Street banks, including some of those that have been bailed out using taxpayer’s money, will find themselves towards the top of this list of financial institutions, and this includes Lloyds TSB, Northern Rock, and Barclays.
According to a recent report these banks are amongst those that have been found to have rejected customer complaints in relation to this type of insurance cover unfairly, and with the FOS having cracked down on PPI it is thought that these banks will be found to be in breach of regulations relating to PPI complaints.
The FOS is calling for customers to be treated fairly with regards to such complaints, which is something that these banks are failing to do. This will be the first time that the FOS will have named and shamed individual banks with regards to this issue.
One industry official said: ‘These banks are not dealing with complaints properly, failing to give them the time and consideration they deserve.’
Another said that his company had not yet lost any PPI mis-selling claims, stating: ‘Either the lender has conceded before a formal adjudication, or the FOS found in favour of the consumer. In my view, high rejection rates are a deliberate tactic by lenders to try to get consumers to give up their claim.’
Theresa Fritz from consumer campaign group Which? said she was not surprised by the recent findings. She stated: ‘The Ombudsman would not be upholding nine out of ten cases if complaints were being dealt with properly,’
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More people are being mis-sold PPI. But lately there is hope for better results for PPI claims.
I think that this report is due within the coming weeks. I can only concur with the above that certain banks may find themselves near the top of this list.