Banks are still failing to deal with PPI complaints
The 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.