News - PPI Complaints Continue To Stack Up
Complaints to the Financial Ombudsman are still dominated by claims of mis sold PPI, recent figures suggest.
Despite a dip in overall complaints between April and June, over half of the grievances (56%) concerned PPI, followed by criticisms of current accounts and credit card accounts which only accounted for 6%.
The FOS declared that there were almost 58,000 complaints during this period which was a lower than the previous three months, when there were 76,522 new cases and 80,711 cases during the same period of the previous year.
Of all the new cases, the Financial Omudsman found in favour of half of the complaints which also included an increasing figure about mortgages.
“It is clear that people are still deeply affected by being mis sold PPI, a practice which was supposedly stamped out long ago,” said a spokesperson for leading PPI Claims Management Company, missoldppiclaims.info. “There are still countless cases coming to light as more and more people begin to realise, despite originally thinking that it doesn’t apply to them, that they may have been a PPI victim after all.
“We advise anyone who has taken out a loan, credit card or mortgage over the past decade to check back through their documentation to see if PPI appears on any of their statements. If it does, then there’s a chance they may be entitled to a refund too.”
Common concerns aired to the FOS included customers having additional charges added to their mortgage at a time when they were having trouble meeting payments. In today’s financial climate, lenders are required to make ‘reasonable attempts’ to agree a repayment plan with the borrower, with open and honest dialogue between the two parties a necessity.
missoldppiclaims.info added: “There’s certainly more onus now on the lender to try to assist a customer as much as they feasibly can when it comes to meeting repayments, rather than duping them into agreeing to extra, hidden charges as has happened in the past.
“It does work both ways though, with it being in the borrower’s best interests to declare as much information as they can to the lender so that they don’t get into a situation when they default on any payments, leading to them having to fork out even more in the form of penalty charges.”
For PPI to still be the stand-out topic of discussion for the Financial Ombudsman is quite alarming, given that certain techniques such as the ‘opt-out only’ approach were abolished back in June 2007. What the figures do suggest, however, is that national headline and the marketing efforts of claims management companies have thrust mis sold PPI into the public eye leading to hundreds of people processing claims every month.
Furthermore, due to the widespread PPI mis selling that took place for the best part of 10 years there doesn’t appear to any sign of respite for the financial institutions who were culpable.