Glasgow: 0141 844 0017 * Edinburgh: 0131 224 0094 * Lanarkshire: 01698 286 463

Archive for tag: Financial Ombudsman Service

Financial Ombudsman Service Sees PPI Complaints Soar

What is PPI?

On paper, the product doesn't seem too bad - payment protection insurance makes the repayments on your debts (loans, credit cards etc.) if you are unable to do so due to unemployment, illness etc.

BUT...

... the terms and conditions of the policy meant that many people were not covered and in the majority of cases, cover finished short of the term of the loan etc. For example, if you made a claim on it in the last few months of your loan, you would find that you were not covered.

Driven by high profits and large commissions, customers were sold a policy they would be unable to claim on but in many cases, the PPI policy was added to the customer's account without their agreement or knowledge.

Customers - like YOU - were paying over the odds for a product that was effectively useless.

After much arguing, the banks were told they would have to pay back this money to customers. And this is where the problem started.

At first, banks made 'offers' far below the actual amount that they should have been paying back. Customers were advised on this via claims management companies such as PPI Scotland, along with consumer groups and the media. Customers, as a result, refused these 'offers'.

But then customers were kept waiting too long for their case to be resolved and, customers were also told NO.

But, with the internet and consumer organisations to help, people are savvier now and demanded that the money which had been taken from them was to be repaid - in full!

The Financial Ombudsman Service (FOS) is the independent body that works with both the financial sector and the consumer, resolving issues with financial products and services. They are the body that is now inundated with PPI complaints - in fact by July 2013 complaints about PPI had jumped by 179%.

Overall, FOS is finding that consumers are complaining more about many financial products and not just PPI, as a result of being so fed up of malpractice by banks and lenders.

You may be surprised to find you have PPI on your accounts. Payment Protection Scotland is an expert and professional company, specialising in helping customers claim back their PPI premiums. Why not give us a call today?