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Submitted: 2010-08-17 13:31:29 | Word Count: 870
As many of us are aware there have been a lot of issues within the United Kingdom of customers being mis-sold payment protection insurance. Measures were taken to enforce rules and regulations by the FSA as well as for consumers to reclaim their money as long as they had a legitimate claim. It was established that the principal perpetrators of the unfair procedures were being done by banks.
Recently a truly alarming statement was released via the Financial Services Authority that over 300,000 client claims that have been filed to reclaim a refund on mis sold payment protection insurance have been refused. It is stated that the banking institutions are not actually reviewing the actual claims but merely automatically denying them.
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This is currently leading to more of a burden on the Financial Ombudsman Service, as when a customer files the complaint with them, they are going to subsequently act on the PPI claims for consumers that place their case with them. On average the FOS will get around one thousand claims from consumers who have been denied their refund by the banks, and it is declared that this is just between 15-20% of the actual volume of consumers whom had been denied. This means that the banking institutions are getting away with their unfair practices.
If you feel that you were mis sold payment protection insurance you must still file a claim to obtain a refund regarding premiums. Of the PPI claims made by FSO on the customer's behalf, a minimum of 90% have been in favor of the client. What this means is, that even if you get rejected of your claim you have very high odds that you had been rejected automatically without the actual financial institution even viewing the claim.
The customer which feels they were unfairly sold PPI definitely has a few options to start a claim. One of course is actually filing all the documents yourself and beginning the process, the second is actually to find a legitimate company which usually deals in PPI claims and reclaiming. The disparities in the two quite straightforward - one costs nothing, and one you will only need to pay a fee if the case is settled and you receive compensation (No win - No Pay). Furthermore, one you have to do all the documents yourself, whilst the claim specialist will do most of the filing for you.
When you take into account that only 15-20% of consumers actually continue their claim once they are denied by the financial institution and over 90% really do win when they do pursue the matter, the amount of money the banks are getting to keep is astronomical and downright thievery.
