One of the most hotly debated topics at present in the legal/ financial services sector, is the question as to “why isn’t the ppi scandal finished yet?” & questions such as “why have the banks’ not taken care of this issue by now?” “why have people not yet claimed back their compensation yet?” etc…
There are several angles from which to answer this question, and so we’ll endeavor to give as complete an answer as possible.
“Why Hasn’t the PPI Scandal Ended Yet?”
Several reasons (mal practice in case-handling):
Firstly: the banks’ have applied time and time again for a claims deadline, and after a lot of waiting and communicating back and forth between the various banks, the bankers association & the financial ombudsman, however, earlier this year, the banks’ were refused this deadline due to the fact that the banks’ not only miss sold ppi in the first instance, but the banks’ also mis-handled many of the claims that came through from the many 100s of 1000s of disgruntled customers, this made the banks’ pursuit of a claims deadline largely futile and practically guaranteed that any future attempts of getting a deadline put in place – seemingly unlikely due to mal-practice.
Another Reason (the amount of claims to process):
The huge number of claims that need to be processed, contrary to the large number of reports claiming that payment protection insurance complaints are “dwindling” there are still huge numbers of complaints to be handled, this makes the completion of the epidemic more tricky, and difficult to scale for the financial institutions that have wrongly sold this insurance to British residents.
Next Reason (Still many people that have not yet filed their claim):
Many people have not yet taken the time to put in their complaint, there are estimated millions of people in the United Kingdom who have done nothing about the fact that they have yet to complain about their miss sold insurance, this means that a huge portion of the victims of this insurance miss-selling are lay dormant, and as these complaints trickle through, it stretches out the time frames in which the claims scandal continues on for.
As you can see from the above reasoning, the scandal has not yet been completed for more than one reason, however there are other angles to this ongoing problem.
“Why have the banks’ not taken care of this issue by now?”
If you refer to the reasons above for a large portion of the reasoning behind this, in addendum to that, there is also the added fact that the banks have only sent out letters to a limited number of people who have been affected by the mis-selling.
Many people have speculated as to the reasons for this, and some theories are as follows:
1/ The sheer scale of the problem makes it a huge task for the banks to trace all of the cases of miss selling, meaning that it is unrealistic in terms of the banks’ internal resources to expect them to know all of the people they miss sold ppi to (another reason why it is so difficult for the banks’ to defend themselves in regard to this issue)
2/ The banks’ perhaps don’t want to invite too many claims into their resourcing due to factors such as, the bill that must be repaid to the victims of the scandal, the negative effects on the reputation of such financial corporations, and the sheer scale of the task of processing refunds for so many people (another good reason for the existence of claims’ management businesses to help investigate such cases) * Again this is only speculation, not necessarily 100% accurate reasoning
3/ Perhaps they have contacted the majority but either A) Some items of communication have been lost in transit OR B) Some people have received correspondence only to put it aside and not act upon it.
It could be more than one or a combination of the above factors.
Which brings us to our next case in point:
“why have people not yet claimed back their compensation yet?”
This could be down to numerous issues down to one or more of the following:
1/ People not having the time to address the issue and make a formal complaint to the corporation that sold them the policy.
2/ People having time to address the issue, but not having time to pursue the case to a sufficient degree.
3/ People starting their claim but the case hitting a “snag” or coming into an issue, and then the person managing their own claim not following up on the problem and the case stagnating as a result of this inaction.
4/ The intimidation factor of people not wanting to make a claim through fear of being wrong, or not wanting to complain even if their is an issue
5/ Simply not being aware of the problem, if people are not aware of the issue, how can they take steps to rectify the problem?
6/ People being afraid of being wrong, of course there is no punishment in place for submitting a case that doesn’t complete as valid, some people would rather avoid the (perceived) embarrassment of the case not being true & valid.
7/ People being sold a policy that was named as one of the many aliases of payment protection insurance, such as “ASU” or “Card Cover” and those people not understanding or not being informed that this is in fact a form of ppi and that this can be claimed for just as all other forms of ppi can be claimed for.
In summary of all the above issues, it is important to take an eclectic view of these different issues, the payment protection scandal as many have called it is a complex issue and the worst case of miss-selling that the financial service & legal industry have ever seen.
The issues surrounding such a large-scale issue are vast and far reaching, however there is still more than ample opportunity for UK residents that have, or have suspected that they have been incorrectly provided with this insurance to do something about the problem, (hence all of the many resources that are available on the internet & contactable by phone).
If you would like to have “ClaimLion Law” to look into your claim, you will be able to contact them at the web address here: http://ppiclaims4you.co.uk