UK PPI Complaints Really Work for the Economy

It is actually great to hear that UK lenders are recognizing consumer needs given they are allocating additional refunds for mis sold PPI on loans, mortgages and credit cards. The current refund bill might increase more than £20 billion according to experts, but today, Lloyds takes half the bill of £13 billion with a total of £8 billion in compensation.

However, according to experts, the PPI refunds actually works better than the usual quantitative easing and tax refunds. They said that people are due an actual windfall, which they take and use to their advantage. Unlike tax reductions and returns, these are not offset to the following time they pay their taxes; they get to spend the money as they wish.

The  Office of National Statistics also showed a 13.4% increase in the number of car registrations in the first half of 2013. More than 25,000 vehicles were registered to many UK consumers. Experts are also observing great activity with consumer confidence increasing in local and regional economies.

I noted that many of my friends who reclaimed their refunds, usually going about £3000-5000 for some of my friends, are planning to use the money to fix certain parts of their homes or even to new businesses.

Indeed, UK PPI complaints, when refunded, actually work for the UK economy. It helps knowing that you are due a windfall that is unexpected in a basic monthly budget.

PPI Claims Management Companies Are Not The Problem – CSC

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.