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When you submit a PPI claim to your bank or lender, a claims handler from the claims resolution department will take up your complaint and process it. Step one is where the process is often slowed down due to the emphasis on deprioritising complaints that the banks were previously employing.

There are two options available to the banks: reject the claim and hope that the complaint isn’t completed as per the judgement of the FOS. The second option is to refund the complaint regardless of the validity of the claim – which means the banks still save as they aren’t required to pay administration fees if the claim is upheld as a completely valid claim.

Banks and finance firms simply aren’t able to simplify their complaints processes and instead focus on refunding enough consumers to ensure that the problem of PPI disappears and they can get back to doing what they do best – recouping losses.

This system has made PPI complaints very difficult and almost impossible to resolve without throwing a ‘claim by’ deadline into the mix.

Without the banks taking on the task of simplifying their claims’ processes, thus giving them the opportunity to assess claims properly it may continue to run and run.