Banks are still failing to deal with PPI complaints

31 October 2012

banksThe PPI scandal was one of many items on the list of things to hate about banks and the finance world is desperate for some good PR in the fallout. However, it doesn't look good as banks are being accused of still failing to deal with the complaints surrounding their mis-selling of PPI.

The Financial Ombudsman told MPs that banks are still not investigating complaints and rejecting legitimate disputes from customers. However, this could be down to a flood of fraudulent complaints, with the banks saying that a third of complaints are being made by people who haven't ever taken out a PPI policy.

The main culprit, according to financial institutions, are 'no win, no fee' firms.

Chief ombudsman Natalie Ceeney told the Treasury Select Committee: "It is true that banks have used phenomenal resources to deal with the clean up. My issue is still whether standards of investigation are good enough."

Ceeney pointed the finger at claims management companies, saying that they "typically take 25 per cent of customers compensation for putting a postage stamp on an envelope" and called for a ban on cold calling but criticised the banks for attempting to throw all the blame their way.

TOPICS:   Banking   Investments   Debt


  • Alexis
    Currently dealing with Natwest RBS re. the girlfriend's PPI complaint. Their tactic seems to be to send back a rejection with a lengthy template about their T&Cs. I don't recall seeing anything about Natwest being the only bank not to have to pay out, so am awaiting them to respond to my 'you're trying it on' reply.
  • Marky M.
    Where's Len?!
  • oliverreed
    When will people start taking responsibility for paperwork they signed?
  • LancerVancer
    @ oliverreed When the banks stop signing my paperwork for me!! The banks got caught out putting ppi on shit that hadn't been wanted or needed or signed for in some cases. I now put all my money into weed. Get a lot better return.

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