PPI Claims Making the Headlines Again

By | March 14, 2014

As the banks struggle to deal with the sheer numbers of people who continue to make claims for mis sold payment protection insurance (PPI), so the scandal continues to dominate the consumer finance news. The recent announcement that Lloyds Banking Group would be apologising for the behaviour of staff at one of its call centres simply adds to the woes the UK banking industry is suffering at present. Staff – employed by Deloitte to act on behalf of Lloyds – were exposed by an undercover journalist to be advised that most first time claims, if not progressed quickly, would not be followed up by the consumer.

Lloyds Admits ‘Shortcomings’

The embarrassment of being forced by the High Court to make repayments has been exaggerated at Lloyds Banking Group as a result of the revelations mentioned above. The bank claims that rather than being commonplace, as the reporter for The Times claimed, the incidents mentioned were isolated. However, it has now cancelled its contract with Deloitte and transferred the centre into the hands of another third party company. Having already paid out over £4bn in mis sold PPI claims compensation, Lloyds faces further criticism for its handling of the latest revelations.

A High Level of Service

Deloitte has been quiet on the allegations but issued a statement defending its working practices:
“[Our] role was to process PPI mis-selling complaints from Lloyds Banking Group customers who were sold policies by the bank, in accordance with the bank’s policies and procedures. In processing claims in accordance with those bank policies and procedures, we provided a high level of service throughout the period.”

Deloitte also claimed that the severing of the contract was not directly related to the reported incident, but die to the fact Lloyds had decided to switch from three outside providers to two.

The Future of Claims

Mis sold PPI claims are still rolling in at an alarming rate, and the likelihood is that many more will be put through the system for the foreseeable future. As many consumers turn to a PPI claims company for help in processing their claim, and talks to introduce a deadline for talks reach a stalemate, it is clear that the £12bn already set aside by lenders to deal with repayments will need to be added to. The probability is that, with so few possible claimants having already done so, lenders will face several more years paying back mis sold PPI.

Leave a Reply

Your email address will not be published. Required fields are marked *