Thousands await PPI decision over six months after deadline
In their new survey Which? revealed that thousands of consumers were still awaiting an acknowledgement of, or response to their PPI Complaint, despite the Regulator’s expectation that all Complaints are responded to within eight weeks.
The Which? survey carried out on 6,039 consumers, highlighted that 60% of consumers had not received any confirmation on whether or not they were due a PPI refundi. Perhaps more surprisingly, half of consumers surveyed had not even had an acknowledgement from their Lender to confirm they had received their PPI Complainti.
The delays have been attributed to the ‘significant volume’ of PPI Complaints received prior to the PPI deadline.
Timescales – What can we expect?
The results of the Which? Survey found that the speed at which Lenders are progressing Claims appears to differ; 71% of consumers who had raised a PPI Complaint to Barclays had received a resolution to the Complaint, compared to only 29% for other Lendersi.
Which? contacted several Lenders for an update and all cited the volume of Complaints they received in the run up to the PPI deadline as the cause of the delays.
In October 2019, the Regulator reported a delay in financial organisations handling PPI Claims as “complaints sent to firms increased significantly during August 2019”ii. The Regulator went on to inform consumers that it was possible they may not receive a response to their PPI Complaint until Summer 2020.
The Regulator has not since updated this time frame however, Which? have been told by staff processing PPI Complaints for some that their contracts have been extended until October 2020i, which suggests that some consumers will be waiting much longer to receive an outcome to their Claims.
The Claims Guys continue to work closely with Lenders in an effort to progress PPI Complaints that we submitted on behalf of our customers prior to the PPI deadline.
Under normal circumstances a PPI Complaint could be escalated to the Financial Ombudsman Service (FOS) if a Lender took longer than eight weeks to respond, or a consumer did not agree with the Lender’s decision. However, the FOS have echoed the Regulator in urging consumers with outstanding PPI Complaints to wait for a response from their Lender before escalating a Complaint to the FOSiii.
The Regulator has confirmed that where a consumer is due Compensation for a PPI Complaint, they would expect that a Lender pays interest against this Compensation that considers any delay in providing a responseii.