Banks are having to put more money aside to deal with bogus PPI mis-selling claims – purely because of the extra admin involved.
They are having to spend millions dealing with ‘vexatious’ claims from customers who never even bought a policy, or from people who have never even been customers.
Nationwide last week revealed that these ‘vexatious’ claims account for around 30% of all complaints, with the vast majority being submitted by claims management companies.
Nationwide said it is partly because of these invalid claims that it has increased its PPI provision of £19m for the year ending September 2010 by a further £15m for the first half of this year. But £10m will go towards the cost of processing claims rather than customer redress.
Other banks are reporting the same problem.
Santander, which has put aside £731m, said half of the PPI claims it receives are from claims management companies, of which a third are not valid. Up to 80% of claims from claims management firms are proving to be from people who have never had a PPI policy.
Lloyds has also confirmed that a number of claims are invalid, whilst Barclays says that some 20% of the claims it has had are not from its own customers. Royal Bank of Scotland says one in five claims are not genuine.
News Source: http://www.introducertoday.co.uk
They are having to spend millions dealing with ‘vexatious’ claims from customers who never even bought a policy, or from people who have never even been customers.
Nationwide last week revealed that these ‘vexatious’ claims account for around 30% of all complaints, with the vast majority being submitted by claims management companies.
Nationwide said it is partly because of these invalid claims that it has increased its PPI provision of £19m for the year ending September 2010 by a further £15m for the first half of this year. But £10m will go towards the cost of processing claims rather than customer redress.
Other banks are reporting the same problem.
Santander, which has put aside £731m, said half of the PPI claims it receives are from claims management companies, of which a third are not valid. Up to 80% of claims from claims management firms are proving to be from people who have never had a PPI policy.
Lloyds has also confirmed that a number of claims are invalid, whilst Barclays says that some 20% of the claims it has had are not from its own customers. Royal Bank of Scotland says one in five claims are not genuine.
News Source: http://www.introducertoday.co.uk
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