The Claims Standards Council, who represents some UK claims
management firms, said that firms are not to blame for the increasing number of
fraudulent PPI claims cases. The Claims Standards Council has a streamlined
process of investigating claims and ensuring that all claims management
companies do not place too much pressure on banks when addressing claims.
This came as a response against banks who continue to blame
claims management companies for sending fraudulent mis sold PPI complaints that
continually clog the PPI claim process.
The CSC does not deny that CMCs take in PPI claims that
merit some ambiguity and send them to banks. However, they said that these PPI
claims are sent to banks because the client had truly forgotten if they have a
mis sold PPI on their loan, mortgage or credit card.
The British Bankers Association said that customers do not
need legal representatives to know if they were mis sold PPI or not. Through a simple
phone call, they can ask if their loan, mortgage or credit card has an attached
loan protection, accident, sickness or unemployment insurance (ASU) or any
other kind of PPI. They do not need to have their PPI claims sent in.
Over 86% of bank-rejected claims in the Financial Ombudsman
was ruled in favour of customers. However, according to the CSC, some claims
rejected by the bank were valid PPI claims under the ruling of the FOS.
The CSC makes their stand that claims management companies are
not to blame for the slowdown of the PPI claims process because the banks
themselves are still dragging their feet to address the situation.
