Recent figures published by the Financial Ombudsman Service (FOS) reveal that as many as 9 out of 10 of the claims escalated to the regulatory body are upheld in favour of the consumer. This is worrying news for the financial sector but a huge win for the many thousands of British consumers who have been mis-sold PPI.
Which Banks are Most Likely to Pay PPI Compensation?
While the payout rate across all financial institutions stood at 90 per cent in favour of the consumer, there are some banks and lenders that have a higher payout rate. This is seen as indicative of both their poor record in mis-selling PPI, as well as their inferior customer services and inadequate complaints handing procedure.
FOS report that Black Horse, Egg, MBNA Europe and FirstPlus Financial have the highest PPI compensation payout rate with as many as 99 per cent of the cases referred to FOS being upheld in favour of the consumer.
Why are so many PPI claims escalated to FOS?
Research also shows that as many of the 1 million plus complaints made directly to banks, 62 per cent are rejected outright. There is a high attrition rate here where consumers are deterred to take the matter further.
If however, more consumers were to take the complaint to the FOS they could expect to have the case upheld in their favour.
Understanding the Bank’s Rhetoric and Bluff
In most cases there is no need to escalate the case to FOS and this is where a dedicated PPI claims specialist comes to the fore. PPI Return have many years of assessing the viability of PPI claims and can often get PPI compensation in place without FOS intervention.
One of PPI Return’s key skills is wading through the rhetoric and outright rejection consumers are faced with. Our team of dedicated PPI claims advisors have first hand knowledge of how the banks respond to claims and how best to counter any rejection or good will gestures.
This is hugely beneficial to the consumer as the timeline for a successful PPI claim is significantly reduced. As FOS gets more and more referrals there will undoubtedly be a longer period from claim start to completion.
For more information on how PPI Return can help with a PPI claim please call 0800 877 8888. Out 60 second test will quickly help you establish if you are eligible to make a PPI compensation claim.
Content correct at time of publication