There have been an incredible rise in the amount of complaints for the past years for mi-sold payment protection insurance. However, banks and finance institutions are trying to make a way on how to get rid of ppi claims within the consumers. Banks and lending firms across the United Kingdom have recently exposed in the press with statements of huge profits and even bigger amounts of complaints for bad customer service. After many finance institutions are already penalized by the Financial Ombudsman Service, massive profits are still adding up on the injury of many customers who have been working to make ppi claims for having poor customer care. In 2010, there was a record number of ppi claims and 84,000 of those have been brought to the attention of the Financial Ombudsman Service.
Most of these complaints led to filing ppi claims that was recorded as the highest area of complaints. Many individuals think that the rise in ppi claims is due to the information given to the customers on what constitutes mis-sold payment protection insurance plan. Because of this more information available has meant a lot of people who hadn¢®?t realized they’d been mis-sold insurance policy are now in a situation in making ppi claims against their bank or lender. Although the ppi mis-selling issues has created many extra ppi claims, there are still lots of customers who are owed money from being mis-sold payment protection insurance.
The scandal involving ppi mis-selling has prompted many banks and lenders to avoid the controversial ppi contract alongside loans and credit cards. Though, banks and loaning companies are still wary about compensating the clientele who are making ppi claims from them. Due to a lot of these ppi claims from the customers, finance companies and banks are trying to make the claim process more difficult in the hope that much less people will pursue their claim and more will be discouraged in continuing their case. Recent review expressed that it seems when a claim is made, banks and lending companies will often take time to respond with small information with the next steps that the customers need to take. Some banks do not also acknowledge the ppi claims in any way. This is their method to attempt to discourage the claimants from pursuing their claims with the hope that they will give up. If they succeed with this actions, banks will no longer pay back the customers?mis-sold ppi.
Reports have already named and shamed the banks and lending companies which are upholding the ppi claims and reimbursing the customers compensation. These banks and lending companies are common financial giants but because of the validity of the ppi claims of their customers, they’re being forced to pay back the ppi premium cost, plus interest.