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Banks continue to get away with cheating the public
We hear about it all the time in the media, banks rejecting valid PPI complaints. This has led to a huge backlog with the Financial Ombudsman Service, now up to two years. But why do the banks reject valid complaints, and what should be done to stop this?
Why do banks reject valid complaints?
It’s simple, it’s estimated that 9 in 10 customers who receive a rejection do not take the matter any further. It’s therefore massively financially beneficial for banks and lenders to reject valid PPI cases. People still tend to trust banks and lenders despite the numerous financial scandals that have proven beyond doubt that banks simply cannot be trusted. Banks will use various methods and tactics to wriggle out of paying back PPI compensation and, unfortunately people are still falling for these tactics.
How do we know that the banks are rejecting valid PPI complaints?
Simple, when claims are rejected the Financial Ombudsman Service will look into the complaints, if they are escalated to them within 6 months of the banks rejection. The Financial Ombudsman Service also release statistical data twice a year and this data proves beyond doubt that lenders are continuing to reject valid complaints.
So why are they allowed to get away with it?
Good question! The financial sector is regulated by the Financial Conduct Authority, and the Financial Ombudsman Service investigate and resolve complaints brought against banks and lenders. Unfortunately, in my humble opinion, there are just far too many employees and decision makers within the Financial Conduct Authority (FCA) and the Financial Ombudsman Service (FOS), that have worked for the banks and lenders in question. Furthermore, many employees who currently work within the FCA and FOS will, in the future, go on to work for these banks and lenders. Would you want to ‘rock the boat’, or upset your past or future employer?! It’s a sad situation but it’s the reality we currently live in.
So what should be done?
A quick and simple solution in my opinion. For every day that over 50% of complaints that are found in favour of the customer by the Financial Ombudsman Service, the lender should be fined a percentage of their annual profit. This would soon make them get their house in order, and will be a huge step forward in finally making these unsavoury and untrustworthy banks and lenders start treating their customers fairly.
What can we do?
Firstly it is vitally important that anybody who receives a rejection from a bank or lender does not take no for an answer. Escalate your complaint to the Financial Ombudsman Service, and do it quick. We make the process simple for our customers and we ensure if a claim is rejected unfairly, it is escalated to the Financial Ombudsman Service. There is some waiting to be done once the matter has been escalated but, in the majority of circumstances, the wait is well worth it as thousands of our customers have received thousands of pounds.
STOP the banks rejecting valid PPI claims
