17 December 2018
The PPI compensation process is proving a bumpy journey for both the banks and customers, but the end is in sight with the PPI deadline August 2019. Have you "made a decision"? Are you claiming your money back?
No one can fail to recognise the big problem that the mis-selling of PPI has been. Thousands of people are now claiming back what should never have been taken from them in the first place: their money for an insurance that was weak.
But, what should be a straightforward compensation path, has proved to be anything but. All banks were affected, even those with a well-known 'ethical' approach to banking and their activities, are also caught up in the scandal too.
The Financial Services Ombudsman (FOS) - the body that looks after customer complaints regarding banks, their behaviour and products - and the Financial Conduct Authority (FCA) that regulates the banks and how they behave, both say that cases are not tailing off.
The banks said right at the start of the scandal that they didn't expect the compensation process to last long. How wrong were they?
The compensation pot currently stands at £32.9 billion and with the deadline announced, it is hard to see how this figure won't significantly increase.
But there have been other issues that have plagued the banks in relation to the compensation journey too.
The Co-operative Bank, a bank that prides itself on its ethical dealings with customers and money (and how it invests) has been fined, along with Lloyds Banking Group, for being too slow in making payouts.
Both the FOS and FCA set clear deadlines by which the bank must respond to customers and deal with complaints about PPI compensation.
And, according to these two organisations, more fines could follow for other banks.
PPI was a 'substantial source of profitability for banks' according to one financial analyst and thus, claiming your money back is a priority!
FOS, who deals with all kinds of disputes between customers and banks, have been at the forefront of helping customer claim back their cash, even when the banks have denied the claim. They, as a whole, uphold in favour of the customer, in around 7 out of 10 cases.
They have said that cases are becoming more complex but they expect the saga to carry on rumbling on for some time yet as the deadline of August 2019 is some months away.
If you think you have a claim for PPI compensation but would like help with it, all you need to do is contact us here at Scottish PPI Claims. We'll be happy to help!