Payment protection insurance (PPI) has become a millstone around the neck of the UK banking industry, a fast-growing monster that shows no signs of dying off. With more people putting in claims thanks to the High Court ruling that ordered the banks and other lenders to pay back any fees relating to mis-sold PPI policies the mainstream press has kept the story alive, and recent developments have drawn attention to the problems faced by individuals who believed their route to repayment was now a simple case of making a call and getting the money owed.
Lloyds Banking Group under Fire Again
The most prominent story has been that regarding the Lloyds Banking Group, which owes more than any other lender. The revelation that call centre staff employed to handle claims were told to stall on processing payments in the hope that claimants would then not bother has further damaged the reputation of the bank. The staff were employed not by Lloyds, however, but by a third party brought in to help sort out the backlash. Nevertheless, the incident has left a bad taste in the mouth, and was the last thin Lloyds needed in the current situation.
The PPI Claims Company Route
The call centre fiasco is one reason why many people are still choosing to use a ppi refunds company to get back the fees they are owed. Many examples of banks stalling or delaying payments – they have been told they must now process them in a reasonable time or face fines – can be found over the last couple of years, and it would seem that things have hardly improved. The expertise offered by claims companies is not to be sniffed at, and may make things a lot easier for those who cannot face the trials of arguing with their bank.
The False Claims Scandal
One reason the lenders have had to enlist outside help such as that mentioned above is the frequent dealings with false claims. People have been taking chances to claim back money they were never owed in the first place, and sorting these bogus efforts from the genuine ones has added to the time needed to process PPI claims. It is to be hoped that, in future, call centres will be more diligently managed and used to greater effect to get back the money owed to wronged consumers, many of who are still waiting for their claim to be processed.