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Banks and regulators to take on claims firms

The major banks, regulators and the Financial Ombudsman Service, have pledged to make Payment Protection Insurance claims easier and prove to consumers that they don’t need to use a claims management company. 

MoneySavingExpert.com and Which? hosted a PPI Summit yesterday to increase awareness of how easy it is for consumers to reclaim mis-sold PPI for free and to tackle head on the unscrupulous claims firms who exploit consumers wanting to claim back their money.

The aim was to get all parties working together to help people get back the money they are owed and help restore trust in the PPI claims process.

Participants at the summit agreed to standardise complaints procedures across financial services providers and to make the process clearer and simpler for consumers.

They also agreed to work together to improve communication with customers and to explain why they don’t need to use a claims firm.

They also agreed to write to the Justice Secretary Ken Clark to call for tougher regulation of claims firms.

All parties present also committed to continue to work together to take forward further work in this area.

Richard Lloyd, executive director of Which?, says: “It is a big step forward to have representatives of all the major banks and the regulators around the table and it is encouraging that action has been agreed to help people get back the £5bn of mis-sold payment protection still available.

“But this is just the start. We will continue to work with everyone present but the government must also now up its game and speed up its plans to tighten up regulation of unscrupulous CMCs who are exploiting consumers who just want to claim back what is rightfully theirs.”

 

 

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  • Anon 26th April 2012 at 11:51 am

    I sympathise ‘anonymous 24/4/12 1:45pm’ – its is so wrong that you were charged £500 that was not refundable to you when it was proved that you had not mis-sold. The broker always seems to be the one hit. It really feels at the moment like the powers that be do not want brokers trading, just the highly moral and competitive (cough cough) banks.

    My boss asked me to look over a PPI complaint recently which was via one of these companies. Why they were actually complaining was unclear, as the complaint just said something along the lines of ‘it was mis-sold it wasn’t what I wanted’ so we asked why, to which the client replied ‘I wanted life cover not this’ to which we replied, ‘this is life cover, not even PPI’! Firms that put in those sort of ‘claims/complaints’ against anyone should be FINED HEAVILY and made to repay any FOS charges the broker has incurred.

  • Anon 26th April 2012 at 11:50 am

    I sympathise ‘anonymous 24/4/12 1:45pm’ – its is so wrong that you were charged £500 that was not refundable to you when it was proved that you had not mis-sold. The broker always seems to be the one hit. It really feels at the moment like the powers that be do not want brokers trading, just the highly moral and competitive (cough cough) banks.

    My boss asked me to look over a PPI complaint which was via one of these companies. Why theye were actually complaining was unclear, as the complain just said something along the lines of ‘it was mis-sold it wasn’t what I wanted’ so we asked why, to which the client replied ‘I wanted life cover not this’ to which we replied, ‘this is life cover, not even PPI’! Firms that put it those sort of ‘claims/complaints’ against anyone should be FINED HEAVILY and made to repay any FOS charges the broker has incurred.

  • D.Casey 24th April 2012 at 1:45 pm

    I am a mortgage broker who had to pay £500 to the Financial Ombudsman for investigating a “complaint” on a re mortgage via a CMC. The complaint was rejected both by my network as laughable because I had done nothing wrong and by FOS in due course.However, it still cost me £500 for FOS to investigate it.The CMC just sent out a template letter without checking any facts because it costs them NOTHING to do so other than a stamp! This dubious practice will continue until these outfits are made to pay an up front fee to stop spurious “claims”. The fee can then be reimbursed if the claim is upheld.But the MOJ of course does nothing to stop them and the innocent broker is the mug as usual.This can only happen in the financial services business whereby being innocent counts for nothing and costs you money.

  • Stuart Duncan 24th April 2012 at 11:53 am

    @GRB – I have yet to come across a CMC that genuinely acts in a clients’ interests. The banks certainly are hypocritical, but it is costing them £500 a case, often to defend claims that have nothing to do with PPI or bank charges and this is due to CMCs firing off random complaints even wwhere the consumer has lost nothing.

  • GRB 24th April 2012 at 11:27 am

    I am unsure as to why CMC companies are getting lambasted, yes there will be poor ones as well as the good ones that make it clear to their customers the terms under which they will take on their claim, it is then surely the customers choice if they proceed. There are good and bad in all sectors of business, however it seems a little rich the institutions that have been responsible for the misseliing are calling for tougher regulation on CMC companies. It could be said that if it was not for the CMC’s then this particular area would not have received the attention it has and people would not have realised they had been shafted by our wonderful institutions. It is also worth noting that although many IFA’s sold the correct policies to clients there are also a large number who passed their clients to a so called master broker to arrange secured loans who then sold the client a lump sum policy, usual story 5 year insurance 10 year + loan etc, these brokers and IFA’s are not blameless as they would have received a reasonable commission for the provision of the client based on the loan amount and insurance, this is not a case of tarring IFA’s with the same brush etc but what I feel is a valid and balanced point, I am sure it will generate the usual holier than though response from some areas which is to be expected.

  • Ian 24th April 2012 at 11:21 am

    Looks like the Banks are trying to make themselves look like the good guys. If it had not been for their appalling misselling, we would not be in this position!

  • Matt 24th April 2012 at 10:52 am

    Surely the easiest thing if it is going to be so simple to claim this money back is ban any involvement from a CMC from being involved in a PPI mis-sell claim. But would the MoJ do this? Would they want to?

  • Steve Keenan 24th April 2012 at 10:51 am

    Great news, if it ever happens. If more organisations improved their complaints handling procedures to increase customer satisfaction then these claims firms would become unneccessary & every one would be a winner? Most importantly the majority who pay over the odds for insurance products to balance the exorbitant settlements paid out via these claims firms.

  • terry 24th April 2012 at 10:44 am

    This is like shutting the gate after the horse has bolted.These organisations should have been attacked when they made fortunes out of alleged endowment and pension misselling. The industry rolled over and the claims companies saw the industry as a cow to be milked(mind you I suppose this could be said of other organisations which i dare not mention for fear of reprisals.

  • A bit late for this, is it not !!!! 24th April 2012 at 10:43 am

    How come it takes this long for someone of this calibre to work these things out. Are they so clever that they cannot see what goes on in the real world. So it takes 5 years of endowment complaints and 2 yers of PPI complaints to get the penny to drop.