FOS Gives Overview of PPI Claims Issues

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FOS Gives Overview of PPI Claims Issues

The Financial Ombudsman has been working hard to deal with the growing number of PPI claims that it has dealt with over the last few years. Many people wonder why the FOS often takes so long to deal with some of them. The FOS said that it isn’t at fault with many of the delayed claims.

Many PPI Cases Are Very Complex

The FOS said that some of the PPI claims that it faces are particularly difficult. Customers may have incomplete information or the banks may have engaged in unusual practices that make it difficult to figure out whether a customer is owed money.

ome cases were not illegally sold, but were marketed to somebody that would unlikely have benefited from payment protection insurance. For example, some policies have clauses that make it difficult, but not impossible for self-employed individuals to file a claim. Steve Townsley, a senior ombudsman, said that he has ruled in favor of the claimants in most of these cases, because they were clearly sold a policy that wouldn’t have benefited them.

About 10% of the claims that it receives fall into this category.  Many ombudsmen said that these difficult cases are the primary reason that there is such a backlog of PPI claims.

Best Way to Proceed

The FOS is trying desperately to clear through its backlog and ensure all customers are paid in a timely manner. However, some of these complex cases have made it more difficult to do so.

The FOS recommends that clients file through the business that sold the policies first. They have a detailed understanding of the clauses that they wrote and can better tell if the policy was wrongly sold to a customer. Customers are advised to always file with the Financial Ombudsman Service if they feel that their claims was wrongly denied.

People using a claims firm should also make sure that it has all the necessary information. This will make it easier for either the FOS or the bank to process it.

COVID-19 ANNOUNCEMENT

MARCH 23RD 2020

At this time we are continuing business as usual however our team will now largely be working from home. This limits our phone contact availability. Customer support remains available Monday to Friday but please email in to info@oraclelegal.com with your query. We aim to get back to you within 48 hours. On receipt of PPI refunds our fees remain payable and can be paid via our website www.oraclelegal.co.uk/payments/ or via BACS. We are also working on some other areas of potential claim for you in connection with your PPI and will be in touch shortly where applicable to present this to you.

IMPORTANT:The last day we can accept a new claim is Friday 23rd August – midday – to ensure the paperwork is properly processed and lodged with your lender before the cut-off time.