You are here: Home - Credit Cards & Loans - News -

Banks go slow on PPI investigations

Written by:
Banks are dragging their feet on PPI claims, finds new research, with some claims taking 32 weeks or longer.

Claimants run the risk of missing the 29 August deadline – the cut-off point to assess PPI claims.

Claims management firm, Etico, said some banks are now only issuing their final response letters 16 after weeks after initial claims were made. The FCA says this response needs to happen within eight weeks. The group said it has cases from September 2018 where no formal acknowledgement of the claim has even been received.

The group said customers should be given a deadline that relates to the start of the process, not the submission of the actual claim. It said getting hold of this information is challenging, requiring banks to provide it accurately and promptly, and some consumers just won’t be armed with the correct information in time.

The findings show the dangers of waiting until the August deadline. Technically, if applicants wait more than eight weeks for a response, they can take their case to the Financial Ombudsman, but this requires more questionnaires and there may be a back-log as the cut-off date approaches.

Etico Group’s general manager, Nigel Wright, said: “With the FCA’s August 29 deadline looming, we have seen a slowdown in processing both initial PPI information requests and claims. Most consumers don’t realise that certain information needs to be provided by the lender before a PPI claim can be submitted. With just 30 weeks left before the FCA’s deadline is reached, delays in providing this information mean that claims cannot yet be submitted. It is essential that consumers are made aware that the delays being experienced with some banks could mean that they miss out on their claims

“Consumers who have been putting off looking into whether they had been mis-sold PPI need to act now, either by investigating themselves or through a reputable claims management company. If they don’t act now it’s possible they’ll miss the boat and will not get another chance to secure legitimate payouts if they are found to be due.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week