The number of complaints about payment protection insurance has sharply accelerated, with around 12,000 new cases being referred to an ombudsman each week between October and December.
The Financial Ombudsman Service received 145,546 complaints about PPI during the last three months of 2012. This represented 80 per cent of all new complaints.
The massive case-load was more than double the amount of complaints received in the previous quarter.
The big increase in PPI cases caused the total number of complaints in the three months to rise to 180,679, which means the ombudsman received more cases in that one quarter than in any single year between 2000 and 2010.
Credit cards were the second-most complained about product, accounting for 3.5 per cent of complaints, while current accounts were the third-most complained about.
The number of complaints regarding PPI has been steadily rising for some time. Between April and June last year just 32,000 cases were referred to the FOS.
For more on this story, visit Money Observer.
Bank's Fury at Mis-selling Probe
Sky News today reports that the bosses of Britain's major banks have mounted a coruscating attack on their new regulator as they brace for the outcome of a new mis-selling probe that will result in another multi-billion pound compensation bill for the industry.
City editor, Mark Kleinman says
"I have learned that the chief executives of some of the biggest high street lenders met for secret talks earlier this month, at which they shared profound concerns about the approach of Martin Wheatley, head of the new Financial Conduct Authority (FCA), to the mis-selling of interest rate-hedging products to small businesses.
The bank chiefs are understood to be concerned that Mr Wheatley will ignore recent victories for banks in mis-selling court cases and establish a compensation framework that could cost them as much as £10bn.
One bank executive said: "Repaying customers who have been mis-sold to is right and proper, but he [Mr Wheatley] seems to have an agenda to persecute the banks which goes way beyond that.
"It is getting to the point where investors will have to apply a 'Wheatley discount' to bank share prices."
The banking sector is braced for its latest bruising battle with Mr Wheatley to unfold this week when the Financial Services Authority (FSA) announces the results of a long-running pilot programme aimed at assessing the scale of redress owed to customers who were mis-sold interest rate swaps.
The FCA will be spun out of the FSA later this year."
For further details on this story head over to the Sky News website.
City editor, Mark Kleinman says
"I have learned that the chief executives of some of the biggest high street lenders met for secret talks earlier this month, at which they shared profound concerns about the approach of Martin Wheatley, head of the new Financial Conduct Authority (FCA), to the mis-selling of interest rate-hedging products to small businesses.
The bank chiefs are understood to be concerned that Mr Wheatley will ignore recent victories for banks in mis-selling court cases and establish a compensation framework that could cost them as much as £10bn.
One bank executive said: "Repaying customers who have been mis-sold to is right and proper, but he [Mr Wheatley] seems to have an agenda to persecute the banks which goes way beyond that.
"It is getting to the point where investors will have to apply a 'Wheatley discount' to bank share prices."
The banking sector is braced for its latest bruising battle with Mr Wheatley to unfold this week when the Financial Services Authority (FSA) announces the results of a long-running pilot programme aimed at assessing the scale of redress owed to customers who were mis-sold interest rate swaps.
The FCA will be spun out of the FSA later this year."
For further details on this story head over to the Sky News website.
Consumer Fairness Must be at the Heart of PPI Deadline Decisions
We Fight Any Claim (WFAC) is urging the Financial Services Authority (FSA) to put consumer fairness at the heart of any decision they make about a possible deadline for reclaiming mis-sold Payment Protection Insurance (PPI).
As Britain’s Banks, via the British Bankers Association (BBA), lobby for a deadline for new claims to be initiated, it was widely reported in the media at the beginning of the year that the current provisions for compensating consumers of £13 billion are likely to almost double to £25 billion during 2013.
Head of Communications at WFAC, Simon Evans commented:
“To be frank, I am appalled by the attitude of the banks in this matter. To try to seek a deadline that will deny thousands, if not millions of consumers a right to reclaim monies they are rightly owed is not only infuriating, but in my opinion, wrong.
“In the last week alone we have seen a former senior executive of Lloyds, Helen Weir, apologise for the mis-selling of PPI to consumers across every corner of the UK, and admit that the issue has caused a breach of trust between banks and consumers, so it is simply not good enough to make the right noises in public whilst at the same time the banks push hard to deny all consumers a fair opportunity to reclaim their money.
“We should be telling it like it is, the banks are once again looking to keep customers money, which they are not entitled to. This is staggering and in the wake of the banking crisis, the LIBOR scandal and the Wheatley Review, and the record fines that banks are being served with, it beggars belief that it seems they are trying to recoup some of this money by ripping off their own customers yet again.
“Remember these are the very same banks who when it was discovered that they were mis-selling PPI tried every possible avenue to avoid repaying consumers. Not only that they continue to obstruct, delay and argue the point in minute detail in ultimately successful cases, which not only causes delay for consumers but means that the sums repaid are greater due to the interest being added, so how is this value for anyone?
“If we look for example at Lloyds TSB Group, in cases where they are trying to deny the consumer their rightful repayment, the Financial Ombudsman Service (FOS) has adjudicated in favour of the consumer in almost every single case – as they upheld 98% of cases in the first half on 2012. This is another reason why this move from the BBA is so outrageous.
“The answer is simple. If banks really want an early end to the PPI scandal take our advice. Pay every single consumer, such as our customers, their money back tomorrow. No arguments, no delay, pay everyone back all they are owed and the scandal will be over, don’t try to wriggle out of your responsibilities by arguing for a cut-off date.
“My final message is to the FSA, be bold, and continue to treat consumers fairly and deny the banks this opportunity to abrogate their responsibilities. Make banks treat consumers fairly and honestly and allow everyone the opportunity to be compensated by their bank who mis-sold them the product.”
http://www.wefightanyclaim.com/press-releases.html?article_title=Consumer-Fairness-Must-be-at-the-Heart-of-PPI-Deadline-Decisions
As Britain’s Banks, via the British Bankers Association (BBA), lobby for a deadline for new claims to be initiated, it was widely reported in the media at the beginning of the year that the current provisions for compensating consumers of £13 billion are likely to almost double to £25 billion during 2013.
Head of Communications at WFAC, Simon Evans commented:
“To be frank, I am appalled by the attitude of the banks in this matter. To try to seek a deadline that will deny thousands, if not millions of consumers a right to reclaim monies they are rightly owed is not only infuriating, but in my opinion, wrong.
“In the last week alone we have seen a former senior executive of Lloyds, Helen Weir, apologise for the mis-selling of PPI to consumers across every corner of the UK, and admit that the issue has caused a breach of trust between banks and consumers, so it is simply not good enough to make the right noises in public whilst at the same time the banks push hard to deny all consumers a fair opportunity to reclaim their money.
“We should be telling it like it is, the banks are once again looking to keep customers money, which they are not entitled to. This is staggering and in the wake of the banking crisis, the LIBOR scandal and the Wheatley Review, and the record fines that banks are being served with, it beggars belief that it seems they are trying to recoup some of this money by ripping off their own customers yet again.
“Remember these are the very same banks who when it was discovered that they were mis-selling PPI tried every possible avenue to avoid repaying consumers. Not only that they continue to obstruct, delay and argue the point in minute detail in ultimately successful cases, which not only causes delay for consumers but means that the sums repaid are greater due to the interest being added, so how is this value for anyone?
“If we look for example at Lloyds TSB Group, in cases where they are trying to deny the consumer their rightful repayment, the Financial Ombudsman Service (FOS) has adjudicated in favour of the consumer in almost every single case – as they upheld 98% of cases in the first half on 2012. This is another reason why this move from the BBA is so outrageous.
“The answer is simple. If banks really want an early end to the PPI scandal take our advice. Pay every single consumer, such as our customers, their money back tomorrow. No arguments, no delay, pay everyone back all they are owed and the scandal will be over, don’t try to wriggle out of your responsibilities by arguing for a cut-off date.
“My final message is to the FSA, be bold, and continue to treat consumers fairly and deny the banks this opportunity to abrogate their responsibilities. Make banks treat consumers fairly and honestly and allow everyone the opportunity to be compensated by their bank who mis-sold them the product.”
http://www.wefightanyclaim.com/press-releases.html?article_title=Consumer-Fairness-Must-be-at-the-Heart-of-PPI-Deadline-Decisions
Former Lloyds Chief Says Sorry for PPI
The former head of Lloyds Banking group's retail division has apologised for the mis-selling of payment protection insurance and said she regrets the damage it has caused the banking industry.
Helen Weir, who headed the bank's retail arm between 2008 and 2010, after four years as Lloyds' chief financial officer, told MPs she was sorry for her part in the operation, in which millions of customers were sold useless insurance policies alongside credit cards and loans.
Weir, who is now the finance director at John Lewis, told the parliamentary commission on banking standards: "I acknowledge the mis-selling of PPI across the industry and at Lloyds and apologise wholeheartedly for my part in that."
Weir admitted sales of the insurance had subsidised loss-making unsecured loans, but told the committee she had acted in good faith and believed PPI was a good product.
For more on this visit The Guardian website
Helen Weir, who headed the bank's retail arm between 2008 and 2010, after four years as Lloyds' chief financial officer, told MPs she was sorry for her part in the operation, in which millions of customers were sold useless insurance policies alongside credit cards and loans.
Weir, who is now the finance director at John Lewis, told the parliamentary commission on banking standards: "I acknowledge the mis-selling of PPI across the industry and at Lloyds and apologise wholeheartedly for my part in that."
Weir admitted sales of the insurance had subsidised loss-making unsecured loans, but told the committee she had acted in good faith and believed PPI was a good product.
For more on this visit The Guardian website
Lloyds Blame FSA over PPI Scandal
Lloyds was accused of ‘stretching credulity’ yesterday for claiming the PPI mis-selling scandal was the result of a ‘misunderstanding’ with the regulator.
Helen Weir, who was chief financial officer and then head of retail distribution at Lloyds, apologised for her role in the debacle which has so far landed Lloyds with a £5.3billion compensation bill.
But Weir and former chief risk officer Carol Sergeant defended their actions, claiming the City watchdog failed to raise any concerns about PPI when it investigated in 2005.
For the full story visit the Mail Online.
Helen Weir, who was chief financial officer and then head of retail distribution at Lloyds, apologised for her role in the debacle which has so far landed Lloyds with a £5.3billion compensation bill.
But Weir and former chief risk officer Carol Sergeant defended their actions, claiming the City watchdog failed to raise any concerns about PPI when it investigated in 2005.
For the full story visit the Mail Online.
Banks Brace themselves for more PPI provisions
According to a report on Sky News over the weekend, the Banks in the UK are once again preparing to put aside a further £1 billion in provisions to compensate consumers who were mis-sold Payment Protection Insurance (PPI).
The report says:
"Britain's biggest banks are poised to add hundreds of millions of pounds more to their collective bill for mis-selling Payment Protection Insurance (PPI) in the coming weeks even as they accelerate efforts to persuade the regulator to impose a deadline on claims.
I understand from senior bank executives that the major lenders could add more than £1bn in aggregate to the industry's tab for PPI when they report full-year results during the next six weeks.
The figures are still being finalised and so represent preliminary estimates only. But if borne out, the figure would take the bill for the four largest UK banks (Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland) to beyond £11bn, further cementing its status as one of the biggest British mis-selling scandals ever.
Bankers say that the latest wave of compensation is being used in talks with the Financial Services Authority (FSA) as evidence that a deadline for claims is essential if banks are to continue rebuilding capital levels while growing lending to the real economy."
For more on this story, visit the Sky News website.
The report says:
"Britain's biggest banks are poised to add hundreds of millions of pounds more to their collective bill for mis-selling Payment Protection Insurance (PPI) in the coming weeks even as they accelerate efforts to persuade the regulator to impose a deadline on claims.
I understand from senior bank executives that the major lenders could add more than £1bn in aggregate to the industry's tab for PPI when they report full-year results during the next six weeks.
The figures are still being finalised and so represent preliminary estimates only. But if borne out, the figure would take the bill for the four largest UK banks (Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland) to beyond £11bn, further cementing its status as one of the biggest British mis-selling scandals ever.
Bankers say that the latest wave of compensation is being used in talks with the Financial Services Authority (FSA) as evidence that a deadline for claims is essential if banks are to continue rebuilding capital levels while growing lending to the real economy."
For more on this story, visit the Sky News website.
Mis-Selling Still a Concern for the FSA
The majority of banks' staff incentive schemes encourage mis-selling, the City regulator warned today as it published its final rules aimed at wiping out poor advice in branches.
Martin Wheatley, managing director of the Financial Services Authority (FSA), addressed an audience of senior bankers and insurers to ask them to end reward schemes that encouraged bad sales.
The regulator this morning published its final guidance aimed at eradicating those schemes that result in poor advice to customers. The guidance represents a final warning for banks which have been struggling to clean up their act in light of a damning FSA report into bank sales, and the scandals such as the mis-selling of PPI.
Read more at This is Money.
Martin Wheatley, managing director of the Financial Services Authority (FSA), addressed an audience of senior bankers and insurers to ask them to end reward schemes that encouraged bad sales.
The regulator this morning published its final guidance aimed at eradicating those schemes that result in poor advice to customers. The guidance represents a final warning for banks which have been struggling to clean up their act in light of a damning FSA report into bank sales, and the scandals such as the mis-selling of PPI.
Read more at This is Money.
No Sign of PPI Scandal Easing
An interesting read in this week's Mail on Sunday tells us of the continuing, and ever growing numbers of complaints being made from consumers about their mis-sold PPI.
The article states "Banks are unfairly rejecting tens of thousands of payment protection insurance complaints without assessing the merits of each case, shocking new evidence reveals. In extreme examples seen by Financial Mail, some banks flatly deny that customers ever had PPI – even where they have proof.
Such customers either give up their complaints or take them to the Financial Ombudsman Service, where, inevitably, the bank is found at fault.
The PPI scandal goes back more than a decade, with policies being sold alongside most loans and many credit cards. It was supposed to cover monthly repayments if the borrower fell ill or lost their job.
The problem was that policies were in many cases unsuitable because the borrowers were self-employed, already out of work or unable to claim for another reason. The insurance was also hugely costly, in some cases doubling the loan cost, pushing some borrowers, who could only just manage their repayments in any case, into serious financial difficulty."
Go and have a read of the article and if you feel you may have been mis-sold PPI and need to claim, then give us a call, or come and apply on-line at our website.
The article states "Banks are unfairly rejecting tens of thousands of payment protection insurance complaints without assessing the merits of each case, shocking new evidence reveals. In extreme examples seen by Financial Mail, some banks flatly deny that customers ever had PPI – even where they have proof.
Such customers either give up their complaints or take them to the Financial Ombudsman Service, where, inevitably, the bank is found at fault.
The PPI scandal goes back more than a decade, with policies being sold alongside most loans and many credit cards. It was supposed to cover monthly repayments if the borrower fell ill or lost their job.
The problem was that policies were in many cases unsuitable because the borrowers were self-employed, already out of work or unable to claim for another reason. The insurance was also hugely costly, in some cases doubling the loan cost, pushing some borrowers, who could only just manage their repayments in any case, into serious financial difficulty."
Go and have a read of the article and if you feel you may have been mis-sold PPI and need to claim, then give us a call, or come and apply on-line at our website.
Rogue PPI Firm Crackdown Good for Consumers
We Fight Any Claim (WFAC) have welcomed the news that over
200 rogue Claims Management Companies (CMCs) were last year shut down in a
‘crackdown’ by the Claims Management Regulation Unit.
The Ministry of Justice (MOJ) last week announced that a
total of 209 rogue Claims Management Companies were shut down as part of a
clamp down on the industry between April and November last year (2012). A
further 140 companies have received warnings from the body, while three companies
were suspended.
The Claims Management Regulation Unit has stated that action
will be taken against those CMCs which cause customer upset by continuing to
break the rules put in place by the MOJ. The unit also has plans to work
alongside the Information Commissioners Office in a bid to eradicate unsolicited
telemarketing and text messaging within the industry.
Head of
Communications at WFAC, Simon Evans commented:
“As a Claims Management company specialising in claiming
back PPI, WFAC are pleased to learn that a substantial number of rogue firms
were last year shut down by the MOJ.
“At WFAC we work hard to provide a clear and transparent
service to our customers. WFAC operate a no-win no fee service and do not
charge upfront fees. Upon employment at WFAC our staff are provided with
modular training within the business to ensure the highest levels of customer
service. We strive to distinguish
ourselves from the rogue CMCs who continue to resist the set of regulations put
in place by the MOJ.
“We therefore fully support the recent clampdown by the MOJ
and Claims Management Regulatory Unit against rogue CMCs and are encouraged by
the promise that further action will be taken in 2013 to improve the Claims
Management Industry as a whole.
“It is important that the many people who are yet to claim
back their mis-sold PPI are not deterred from making a claim by the bad
practices of the few CMCs bringing a bad name to the industry. We hope we can
reassure customers that there are CMCs such as ourselves who are able to
provide a fair and reliable service should they choose to use a CMC to
represent them."
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