Many news providers have reported that ‘delays and mistakes by banks’ mean thousands of people are still waiting for their payment protection insurance (PPI) refund.
It has been nine months since certain banks promised to offer ‘no-quibble’ payouts and although a selection of people have received their refund with little hassle; it is not the case for many. The Financial Ombudsman Service (which settles consumer and bank disputes independently) has reported a 50% increase in the volume of PPI complaints.
Although the Banks are doing their best to co-operate, with so many people processing complaints it’s clear they’re struggling to keep up and the way these complaints are dealt with could determine the future and reputation of banks over the next few years.
Tony Boorman, Principal Ombudsman, said: ‘It’s disappointing that there’s little finality for significant numbers of consumers who are still waiting for their bank or insurer to deal with their complaint.’
Is It enough?
Under rules from the Financial Services Authority (FSA), the City watchdog, Banks are supposed to make an offer of compensation within eight weeks and pay out ‘promptly’.
After being mis-sold an insurance product which many received little or no benefit from (with many left out of pocket for years) and then having to wait longer than others because your bank is struggling to process its own volume of mis-selling can be infuriating.
This will definitely not bode well for the banking industry and leads to questions like: “Will the banking industry respond to this kind of criticism?” and “How could they have dealt with it more effectively?” The answers to which only the banking industry will be able to provide.