Banks Rejecting Ppi Claims Automatically

As many of us are aware there has been loads of issues within the United Kingdom of consumers being mis-sold payment protection insurance. Measures have been taken to impose rules and regulations by the FSA as well as for customers to reclaim their funds if they had a valid claim. It had been established that the major offenders of the unfair procedures had been done by banks.

Recently a truly alarming statement was released by the Financial Services Authority that over 300,000 customer claims that have been filed to reclaim a refund on mis sold payment protection insurance were denied. It is reported the fact that banking institutions may not be even looking at the actual claims but simply automatically denying all of them.

This is now leading to more of a burden for the Financial Ombudsman Service, as whenever a client files the actual complaint with them, they are going to then take action on the PPI claims for clients that place their case with them. On average the FOS will get roughly one thousand claims from clients who have been denied their refund by the banks, and it is declared that this really is merely between 15-20% of the actual volume of clients whom have been denied. Consequently the financial institutions are getting away with their unfair practices.

If you think you were mis sold payment protection insurance you should still file a claim to request a refund for premiums. Of the PPI claims made by FSO on the customer's behalf, a minimum of 90% were in favor of the customer. What this means is, that even if you get rejected of your claim you have high odds that you simply have been rejected automatically without the financial institution even looking at the claim.

The customer which feels they were unfairly sold PPI definitely has several options to start a claim. One of course is actually filing all the paperwork yourself and beginning the process, the second is actually to locate a reputable firm which deals in PPI claims and reclaiming. The differences in the two quite simple - one is free, and one you will only have to pay a fee if the case is resolved and you obtain compensation (No win - No Pay). Furthermore, one you have to do all the documents yourself, whilst the claim specialist will do the majority of the filing for you.

When you take into account that just 15-20% of consumers actually continue their claim once they are denied by the financial institution and over 90% really do win when they do pursue the matter, the actual amount of money the banking institutions are getting to keep is actually astronomical and outright robbery.

By: Sharon Dawkins

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If you were mis sold payment protection insurance and want more information and tips on ppi claims please visit Simplicity Claims.