Customers are rightfully growing increasingly frustrated by lengthy delays in receiving their payment protection insurance redress.
So far lenders have paid out £5.4bn since January 2011 to customers mis sold payment protection insurance. This is just over half of the provisions set aside to compensate consumers wrongly sold PPI.
However with around £4bn worth of claims still yet to be settled, lenders are becoming increasingly slow to reimburse customers whom they had already duped once and are currently blaming delays on claims management companies for submitting bogus PPI claims. However latest figures from the Financial Ombudsman Service demonstrate such allegations are somewhat unjust.
The FOS typically becomes involved when the lender rejects a claim. A quarter of complaints received by the FOS, where the lender dismissed the claim on the grounds that no policy existed, were upheld in favour of the consumer alone.
When it comes to invalid claims, the fact remains that there are many customer who were – and maybe still are – completely oblivious to even having a payment protection insurance policy as part of their credit agreement.
This is largely due to lenders automatically adding such a policy onto a loan or credit card without the knowledge of or consent from the client. It is therefore understandable that such confusion about policy mis selling could lead to some customers making an invalid claim.
PPI Return can help shed some light for anyone baffled by reclaiming PPI. Complete our online enquiry form and a member of our team will be in touch to discuss your claim in more detail.