By now, you’ve probably heard all about PPI. It has the dubious honour of being the biggest financial mis-selling scandal of all time. And now, an investigation has found more problems with the complaints process.
Sadly, it was with little surprise that I read about the bad practice discovered at Lloyds bank’s biggest Payment Protection Insurance (PPI) complaints handling unit. An undercover journalist from The Times posed as an employee, and found that staff in the unit were playing the system to the detriment of consumers.
The investigation uncovered a culture where complaint handlers turned a blind eye to the risk of fraud. This yet again casts doubt on claims by banks that they are cleaning up their acts.
It isn’t hard to see why people have lost trust in the banks. This investigation shows that, more than ever, we need Big Change in the banking industry.
We must get tough on banks
From the beginning, many banks have been in denial about the sheer scale of PPI mis-selling. Our executive director Richard Lloyd said:
‘Instead of peddling the myth that many PPI complaints are fraudulent, Lloyds should have been getting their own house in order and properly dealing with legitimate complaints.
‘We have repeatedly raised concerns with the banks, regulators and Financial Ombudsman Service about the worrying variation in quality of PPI complaint handling. There are rules on how banks should handle complaints, and they should be making it as easy as possible for people entitled to a refund to claim back their money without any hassle.’
An investigation by the financial regulator should make sure that all banks are handling complaints properly. And, importantly, the regulator must take tough action on those banks found breaking the rules.
Made a PPI complaint with Lloyds?
If you’re concerned that your claim was not investigated properly, you should resubmit your complaint to the bank.
And if you’re thinking of starting a PPI reclaim, it’s worth remembering a claims management company won’t speed up this process or get you any more money. In fact, they will take a good chunk of any money you do receive as a fee. Instead, use our quick and free tool to reclaim your PPI and make sure 100% of the compensation goes to you.
Are you surprised by the revelations of this undercover investigation? Will you resubmit your PPI complaint to Lloyds as a result?
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