Mis-Sold Payment Protection Insurance Alerts City Watchdog
It has been brought to the attention of the city watchdog that thousands of angered consumers are not being given their right to compensation.
It has certainly concerned the Financial Ombudsman Service, who has become aware of the banks turning down hundreds of PPI complaints a week. They should not be doing so.
There are a great many restrictions on the policies, that ostensibly cover someone for debt repayments if they find themselves out of work. The problem is, that the policies were purposefully sold to people that would never be able to claim. The self employed, for instance.
The Financial Ombudsman Service has a certain amount of complaints, and of these, around a fifth, directly relate to PPI. Even though The Financial Ombudsman Service has declared that the consumers are worthy of refunds, the banks do not seem to be doing anything about it.
The Financial Ombudsman Service has had 16,000 complaints in the last six months, and only manages to deal with 540 a week. It is the single premium policies that get the most attention, whereby people had the cost of PPI added to their borrowing, and so had to pay interest on it.
The Financial Ombudsman Service has many a spokesperson, and one of them said that 'Our concern is that despite warnings that complaints had to be treated properly, many of them are not. We are concerned that there are consumers out there that did not know there was an ombudsman they could turn to if their complaint was refused.’
It is now down to the FSA, who will do their summing up, and deliver a report some time in 2009. it has been a case of fining banks heavily with all this PPI scenario, but it would appear increasingly obvious that they need to be forcing the banks to pay people back.
The FSA are trying, and recently suggested that financial institutions stop selling single premium policies alongside loans, as it was causing problem after problem.
It has been a long time now that banks have been mis-selling PPI alongside pretty much every type of borrowing; credit cards; store cards; loans.
What with all of this being highlighted within the media, there really are no excuses. People should say no to any offer of PPI from the banks, and also make sure that they are not being quoted for borrowing that already has PPI added onto it. It is them simply a case of getting a policy from an independent insurance provider, as there are the only companies worth dealing with, when it comes to PPI.