Record amount of PPI claims made to the Ombudsman

Complaint formA massive 86% of all complaints made to the Financial Ombudsman Service (FOS), in the last six months, were regarding Payment Protection Insurance (PPI). Banks, as well as the Ombudsman service, have been handling complaints for PPI mis-selling for a number of years now, but despite this the number of complaints is still at a record high. The FOS handles cases where the complainant and the seller of the PPI product, cannot reach a satisfactory resolution to the case; over a quarter ...

Rogue claims management companies face crackdown

Rogue claims management companies face crackdownNew figures, from the Ministry of Justice, show that hundreds of rogue claims management companies were closed down, or warned about their practices, during 2012. The claims management industry has grown significantly over recent years; as have concerns about many of their practices, which often include unlawful and unsolicited use of text messages and emails to generate new enquiries. The industry is regulated by the Ministry of Justice, whose Claims Management Regulation Unit has shut down 209 firms between April and ...

PPI: Building Societies “bombarded” by fake claims

New figures show just how many people are making bogus PPI claims. The Building Societies Association (BSA) say that their eight largest members received 22,441 fake claims in the six months to the end of April this year. Shockingly these were cases where the claimant never even bought PPI from the building society they were claiming from. The BSA figures echo those from the Financial Ombudsman who said that 6,000 people submitted false PPI claims in 2011. If the BSA statistics are correct it seems as though the problem is getting worse, wasting valuable time and manpower at the building societies affected. Lloyds ...

PPI compensation leads to tax concerns

Financial experts are becoming increasingly concerned that recipients of PPI (Payment Protection Insurance) compensation are underpaying tax. PPI compensation PPI compensation has made huge headlines over the past couple of years, with many of the UK's major banks paying billions in compensation to people who were wrongly sold the insurance. Last year UK banks paid out £1.9 billion in compensation and the total bill is expected to be above £5 billion. There are generally two parts to the payout, compensation and in some cases interest on the compensation amount. The average payout is £3,000 and whilst the compensation, which forms the largest proportion of ...