PPI Claims Cases Increase by a Drastic 40% Exceeding Previous Estimates by FOS

Jan. 19, 2011 - PRLog -- The FOS has revealed an unexpected surge in payment protection insurance (PPI) claims disputes being brought to their door. The 40% jump in PPI claims cases brought before the body is thought to be partly due to lender refusal to cooperate with claimants directly.

Under the Financial Services Authority (FSA) regulations, lenders are expected to assess your right to make PPI claims and reach a conclusion within 8 weeks. Once 8 weeks have lapsed or the resulting decision was not satisfactory to the customer, the claimant can then take their case to the FOS. The FOS can then begin to consider the PPI claims case to see if they have a right to compensation.  However, since the British Banker’s Association’s (BBA) decision to launch a judicial review into these regulations; some lenders are refusing to process any PPI claims.

Uncooperative lenders coupled with an increase in awareness by customers of their eligibility to make a claim, has led to a backlog of PPI claims at the FOS. By March 2011, the FOS expects to see a 7% rise in PPI claims cases compared to the previous 12 month period. With more than 1 million claims made in the past 5 years and a shift towards more complex and time consuming cases; the FOS are suffering from insufficient reserves to cope with the accumulation of cases.

Although the judicial review was launched back in October 2010, the High Court hearing is only likely to begin on the 25th of January 2011. Expected to last four days, an actual decision on the fairness of FSA regulations may take much longer to conclude. Additionally, the losing side is likely to appeal whatever conclusion is reached, suggesting that PPI claims may increase and stay backlogged for the foreseeable future. With 68,000 PPI complaints now forecast for 2010-11, significantly higher than the 46,000 cases anticipated; claimants could wait years for a resolution to their case. However, they have also stated that the current economic climate is making claims difficult to forecast.

With the FOS forecasting a steep drop in the total number of cases it expects to solve in 2010-11, PPI Return http://www.ppireturn.co.uk are concerned that many customers may be put off making their claims. PPI Return would like to reassure customers who believe they were mis-sold PPI that they may still be entitled to make a PPI claim. Whether you feel you were pressurised into purchasing PPI or were sold a policy that was unsuitable; you can take a 60 second test with PPI Return http://www.ppireturn.co.uk and find out quickly and easily whether you have a right to PPI claims compensation.


ABOUT PPI RETURN – PPI CLAIM SPECIALISTS

PPI Return http://www.ppireturn.co.uk is one of the UK’s leading PPI claims law firms with a wealth of experience and highly qualified legal advisors.

PPI Return is dedicated exclusively to helping clients regain mis-sold Payment Protection Insurance (PPI) payments. There are many thousands of people in the UK who were either mis-sold PPI or not informed of how the PPI worked when taking out loans. PPI Return works to correct this wrong doing and works on a highly competitive fee basis. PPI Return provides an online ’60 Second Test’ where you can quickly assess if you are entitled to make a claim for mis-sold PPI in addition to Web Chat with PPI Claim specialists.

CONTACT

PPI Return
Mersey Chambers
5 Old Churchyard
Liverpool
L2 8GW
Tel:  0800 877 8888
info@ppireturn.co.uk
http://www.ppireturn.co.uk

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PPI Return is one of the UK’s leading PPI claims law firms with a wealth of experience and highly qualified legal advisors.

PPI Return is dedicated exclusively to helping clients regain mis-sold Payment Protection Insurance (PPI) payments.