Banks Fighting Back on PPI Claims

Following the Supreme Court decision early this year, many banks realized the court of public opinion was full of rage. Customers who had been mis sold Payment Protection were simply expecting their money back.

For months many banks did indeed comply and offer compensation in line with FSA guidelines. However from August 2011 there has been a change in the winds and the banks are now trying to bolt the door by rejecting claims.

MBNA and Blackhorse in particular have started to issue rejection letters. Once a customer receives a rejection the loan protection insurance must be referred to the Financial Ombudsman Service. Barclays also recently has started to issue rejection letters and this confirms that banks are attempting a damage limitation exercise.

The decision letters are often generic and fail to disclose the key documents which were possibly used at the time of sale. The reason banks are rejecting claims is of course to stop paying out millions of pounds in compensation. Of course some rejections may be valid and with some merit.

Customers who have complained for mis sold PPI Insurance and who receive disappointing rejection letters often give up their claim. Many simply place the letter in the kitchen drawer and forget about it. Banks try it on and see what reaction they get.

It is important to fight a PPI claim. Receiving a rejection letter from a bank is simply a set back but if a claim is presented properly at the Financial Ombudsman Service then there is a very strong chance the claim will be successful.