Financial Ombudsman Service reports almost 6,000 ‘frivolous’ PPI claims in 2012/11

June 30, 2012 · Posted in Insurance 

Although the first mis-sold payment protection insurance (PPI) claim was made almost 20 years ago in 1992, this issue has increasingly got worse. In the year 2011-2012, the Financial Ombudsman Service (FOS) recorded an explosion of new PPI claims, with 157,716 out of the 264,375 new disputes that year relating to mis-sold PPI claims; 60 per cent of the FOS’s total complaints.

Parallel to this rise, however, was also an increase in bogus PPI claims. The FOS revealed that almost 6,000 of the claims made against mis-sold PPI were ‘frivolous and vexatious’ as no PPI was attached the product in question. In 2011-2012, these bogus PPI claims amounted to 2.5 per cent of the total PPI claims received by the FOS compared to 0.9 per cent the year before.

This rise in both genuine and bogus claims could be down to the number of new television adverts encouraging people to claim back mis-sold PPI premiums. The FOS reported that 69 per cent of all PPI claims received last year were made by such claims management agencies as seen on TV, a figure which although high, is actually lower than the 76 per cent the year before.

Millions of claims have been made by consumers who bought PPI, believing that they would benefit from the insurance should they fall ill, have an accident or lose their job and therefore be unable to make loan and credit card repayments. However, it has been revealed that many were mis-sold this insurance at they would not have been covered.

Although the banks have publicly admitted that they have mis-sold PPI to potentially millions of consumers and have thus put away millions of pounds to cover successful claims, they still plan on assessing each case to ensure no bogus claims fall through the net and therefore ‘get back’ PPI payments.

Contact MoneyBright PPI Claims to find out whether you can claim compensation for a mis-sold policy.

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