What is the 'Consumer Refund Service'?

You might upset a large number who were mis-sold PPI by calling them stupid. 🙁

Maybe the stupid ones were the banks that mis-sold PPI or are now paying out to customers where there was no mis-selling.

A lot of people did not know they were buying PPI cover. The details were wrapped up in the small print of the terms & conditions of their loan or purchase contract. It should have shown up in their bank statements, of course.

Because of appalling record-keeping by the banks they have had to accept liability for compensating people for mis-selling because they were not in a position to prove that there was no PPI cover. This has cost the banks [and ultimately all bank customers] colossal sums in PPI compensation much of which might not have been justified or might even have been fraudulent. This was aided and abetted by the claims management companies that exploited the bank’s delinquency.

Although PPI often features in our discussions, I cannot remember any discussion focusing on this issue. In the same way that I do not like energy companies forgetting to mention that we don’t have to have smart meters fitted, the PPI claims companies don’t usually make it clear that we should only be claiming if PPI was mis-sold.

If you have a mortgage then having PPI might be wise in case you lose your job and could be at risk of losing your home.

For many of us, current account services have always been free so I suppose that those who have had to bear most of the cost of unjustified and fraudulent claims are those who pay overdraft charges.

I agree with what you say about poor record keeping, John, but I’m not happy with claims being made without evidence of mis-selling of PPI.

The banking regulatory authorities imposed the form of PPI remedy on the industry and, sure enough, a bunch of parasites came along to take advantage of it. I don’t know the figures but my guess is that the total amount of compensation paid out for PPI mis-selling exceeds the total value of insurance cover actually provided many times over.

I have had letters from claims companies telling me that if I have ever had an account or a loan with a long list of banks and other providers it is likely that a PPI Compo claim would be successful. Although the cost of the compensation might not directly impact on current account charges it has affected the operating expenses of the banks and possibly emerges in the form of lower interest rates on savings, higher rates and worse terms for loans and overdrafts, the continued maintenance of branches, and the provision of ATM’s. Whether it has had any impact on the pay and bonuses of bank directors and managerial grades is questionable.

The fault does lie with the perpetrators but I wonder how many “victims” have jumped on the bandwagon of easy money, relying on the banks to give in rather than fight a claim? People who knew what they were buying, accepted it at the time but now……. I do not condone mis-selling at all but the scandal here seems to be the lack of effort by the banks to refuse claims, maybe because they lack adequate records. Who really pays? The customers in the end of course.