Presently there are currently some 1,500 problems made to the FSA weekly, but of concern is the number of individuals that do not know they have been unwittingly duped into having a ppi policy and have yet to realize and submit their own ppi claims towards their bank or lender. The new measures will force banks and lenders to begin actively contracting those clients who were targeted by a selling method shown to be liable for mis-selling under a process termed by the FSA as route cause analysis.
Banks and lenders have known for some time these measures might be brought in but many have chosen not to tackle the issue of ppi claims and other ppi related issues until forced to do so. The new rules affect all lending institutions, such as banks, building societies and insurance companies or brokers actively selling ppi to the open public.
As per one of the FSA official, this is actually the culmination of months of hard work and now, with these measures, they look forward to people being treated fairly whether they are buying or complaining about ppi. This responsibility is not on the industry to make sure it treats all clients fairly. They will be monitoring the implementation of their guidance closely to make sure real change is delivered. The policy statement follows consultation that saw significant levels of highly detailed feedback from ppi providers, sellers, trade groups and client bodies.
A spokesperson of one of the claims company said it comes as no surprise for them that FSA has finally got tough with lenders and banks over mis-selling of ppi and the way they handle ppi claims cases. It is way overdue. A few years ago, the Financial Ombudsman Service (FOS) discovered that nine out of ten ppi claims problems which had been turned down by a bank or lender in fact had merit and the customer should have been paid back and compensated. That is just the customers who complained to the Ombudsman and it is approximated that around six of every ten clients who have their ppi claims rejected by banks and lenders never take it further, so you'll find hundreds of thousands more people out there that did have a case but gave up due to how the banks and lenders handled them.
Author Resource:
Harry Tomas blogs about PPI claims and other financial products for UK based site www.PPIClaimsUK.co.uk . He also tweets about unfair mortgage charges and the financial claims sector generally, in addition to writing articles on personal finance, house sales, repossession and business finance.
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