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Banks under investigation for PPI mis-handling


Two unnamed banks are reportedly under investigation for the mis-handling of PPI complaints.

The banks have been accused of rejecting an ‘outrageous’ amount of valid PPI complaints, something that Martin Wheatley, chief executive of the Financial Conduct Authority (FCA) described as “absolutely not acceptable.”

Furthermore, the financial ombudsman, who deals with complaints regarding PPI has reported a 26% increase in the last 6 months, and has upheld 8 out of 10 complaints in favour of the customer, indicating the frequency that banks are unfairly handling PPI claims.

Most recently, Lloyds banking group were fined £4.3 million for mis-handling complaints, by unnecessarily delaying the payment of compensation to customers.

The scandal has led to the involvement of some members or parliament, who have called for the FCA to “take more enforcement actions”. Therefore, it’s expected that the two banks in question will receive fines to reflect the severity of the situation.

Due to the nature of 8 out of 10 complaints being upheld in support of the customer, the likelihood is that lots of unfairly dismissed cases remain unreported. Whilst it can’t be confirmed who the banks in under investigation are, it’s recommended that customers of any banks who have recently had a claim for PPI rejected should forward a complaint on to the financial ombudsman for investigation, as it’s possible that the original decision could be overturned.

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