Banks on Go Slow As Financial Ombudsman Takes Action

Payment Protection Insurance claims have been an on-going battle for the best part of 10 years. In that time, banks have had to pay-out around £40 billion in compensation. A truly eye-watering amount. As such, it is perhaps no surprise that as time passes, banks have become increasingly reluctant to dish out what the consumer has ordered.

Despite the FCA’s published deadline of 29th August 2019, many people’s PPI claims are still on-going as banks attempt to cling on to whatever they can. Research last year showed that many claims are now taking 32 weeks or even longer to complete. From first-hand experience we can tell you, it is often much longer.

Originally, banks non-compliance with PPI claims was a ploy to allow as few claims to be eligible before the August deadline as possible. More recently, banks have even begun to refuse to co-operate with existing claims due to the deadline being passed. Fortunately, when this happens, help is on hand, in the form of the Financial Ombudsman Service

FOS is Boss

The Financial Ombudsman Service (FOS) is an independent body, which consumers and Claims Management Companies such as ourselves appeal to when the banks response to the claim is not deemed to be satisfactory.

The FOS received around 3,500 complaints a week about mis-sold PPI in the last three months of last year and has now dealt with over 2 million PPI complaints (and counting…). Indeed, Caroline Wayman, the FOS’s chief exec., said: ‘There has never been another complaints issue on the same scale as PPI, and the volumes of complaints made to financial businesses around the deadline last August were truly unprecedented.’.

The FOS doesn’t only create a report that you can then use to support a claim; it also has the legal power to ensure payments are made when ruling in favour of a claimant. Thus, it is important for the consumer to remain patient, as whilst the banks continue to try and slow the process, the Financial Ombudsman will eventually ensure that consumers get the compensation they deserve.

If you’ve recently had a complaint upheld, complete a PPI Tax Reclaim here