The British Bankers Association that represents Britain’s banks looked for a review in late 2010 early 2011 against the Financial Services Authority (FSA) and Financial Ombudsman Service (FOS) after rules were made in December of 2010 to stop PPI mis-selling. These new rules regarding selling PPI required providers to explain the key features more thoroughly rather than assuming the documents would be read.
The banks claim that to apply the standard retrospectively for all PPI reclaim cases is unfair, in other words to policies before the review came in. The banks feel it is unfair that a customer can petitions for PPI reclaims if the bank is unable provide evidence it was sold correctly even if the banks were not required to follow the new procedures for PPI selling at the time.
Studies have found that the most common methods of PPI mis-selling have include them being sold to those who could never claim on a PPI policy and those customers who felt pressurised or were even forced to take it during a loan or credit card application.
PPI reclaims are currently the single largest complaint received by the FOS who are now recieveing between 5000 and 10000 PPI reclaim complaints per week. 3 out of 4 PPI reclaims being taken to the FOS are settled in favour of the customer.
The new rules have of course led to a surge of PPI reclaim cases being settled earlier as well as the banks becoming more prepared to pay out on PPI reclaims. A key indicator of this is the announced total of around £6bn or more that has been annexed by major banks to repay mis-sold PPI polices. This figure is still rising.
You can do one of two things, you can of course attempt to reclaim PPI yourself or alternatively you can use a Claims Management Company on a no win no fee* basis to put your reclaim case together and work on your behalf.