Millions of people were victims of PPI mis-selling. Many of these people were irritated by the calls and text messages they received from PPI claims companies. However, Elaine Moore from the Financial Times said that these companies helped many people file claims to recoup money that they were owed.
The problem is that many banks refused to uphold many of these claims. They apparently knew that many of the claims were legitimate, but still tried to deny them. Many citizens were discouraged after their claims were denied. However, many of them still decided to appeal their cases to the Financial Ombudsman Service. The vast majority of these claims have been upheld.
Elaine Moore of the Financial Times said that perseverance clearly pays off when seeking compensation for mis-sold PPI policies. Of course, it would be more ideal if banks upheld the claims in the first place. Nevertheless, it is encouraging that most customers are still awarded compensation after being ripped off.
Some banks have denied over half of the claims that were filed. Lloyds was the worst offender when it came to rejecting PPI claims. The FOS upheld over 90% of the claims that Lloyds rejected last year, which shows that the bank tried to reject a larger portion of claims than other High Street banks.
The banks have taken a huge hit from the PPI scandal. Some of them stand to lose billions from paying PPI compensation and are trying to do everything possible to discourage customers from filing. They realize that some customers won’t proceed after the claim is denied. However, the customers that follow through tend to receive the money that they are owed.
The Financial Ombudsman Service reported that it upheld about 75% of claims between January and September of 2013. The new chief ombudsman said that there are still many customers that are owed compensation for mis-sold PPI policies. These customers are encouraged to file claims with the ombudsman if the banks do not honor them.
Image Post Republished with Permission by James Green