Banks are unfairly rejecting claims for mis-sold PPI loans
The Financial Mail has carried out research and found that 3 bank are unfairly rejected consumer's complaints regarding loan payment protection insurance.
Their research showed that based on 5,000 complaints in the last 6 months, Lloyds TSB rejected 95% of complaints, Northern Rock rejected 72% and Barclays declined 69%.
The Financial Ombudsman requires that banks must "treat customers fairly". In an unprecedented step the FOS will later this year name and sham any banks that are found to be treating consumers unfairly.
When a claim is rejected the next step that a consumer can take is to have their case reviewed by the FOS. The FOS have stated that 90% of the complaints they receive are upheld which is a clear indication that banks are rejected complaints without actually assessing cases on an individual basis.
Most people take out PPI insurance in order to ensure that if they are made redundancy or become ill then their repayments will be covered.
However a lot of people are now finding that sadly these PPI policies are not worth the paper they are written on and that they don't have the right cover in place to ensure repayment are met.
Another factor that people selling PPI policies fail to point out to consumers is that the cost of the policy is often added to the total loan amount which means you are paying excessive amounts of interest as it is all lumped together.
Further information – Mis-sold PPI compensation