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Sunday, March 22, 2009
Monday, March 16, 2009
Huge surge in loan insurance complaints
The Financial Ombudsman Service (FOS) is being flooded with complaints about payment protection insurance (PPI) according to BBC News. PPI is meant to pay out if a borrower is unable to make their loan repayments due to illness or redundancy.
Consumer groups say the insurance is often mis-sold and doesn't pay out when expected. Because of this the Office of Fair Trading, Competition Commission and the Financial Services Authority (FSA), have cracked down on the lucrative PPI market.
The FOS reports that it is currently dealing with an "unprecedented" eight hundred plus PPI complaints each week. This figure has risen sharply in recent months due to the sudden increase in redundancies, and even accounting for the fact the the recession only really began to bite in the final quarter of the year, 2008's figures stand at 5.4 times 2007's. 2009's will almost certainly be higher still.
There are over 12 million PPI policies in force in the UK, accounting for about a third of all complaints handled by the FOS. An FOS spokesperson said: "We are upholding about 90% of the cases we deal with, and with one firm 100% of the cases. We have reported our concerns about some firms who seem to be systemically and deliberately mis-handling complaints."
If you think you have been mis-sold payment protection insurance, consumer group Which? has an online PPI mis-selling checker tool which makes the process simpler.
Consumer groups say the insurance is often mis-sold and doesn't pay out when expected. Because of this the Office of Fair Trading, Competition Commission and the Financial Services Authority (FSA), have cracked down on the lucrative PPI market.
The FOS reports that it is currently dealing with an "unprecedented" eight hundred plus PPI complaints each week. This figure has risen sharply in recent months due to the sudden increase in redundancies, and even accounting for the fact the the recession only really began to bite in the final quarter of the year, 2008's figures stand at 5.4 times 2007's. 2009's will almost certainly be higher still.
There are over 12 million PPI policies in force in the UK, accounting for about a third of all complaints handled by the FOS. An FOS spokesperson said: "We are upholding about 90% of the cases we deal with, and with one firm 100% of the cases. We have reported our concerns about some firms who seem to be systemically and deliberately mis-handling complaints."
If you think you have been mis-sold payment protection insurance, consumer group Which? has an online PPI mis-selling checker tool which makes the process simpler.
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