PPI complaints given extended timeframe
Wednesday, 9th June 2010
Countless UK borrowers whose claims of mis-sold Payment Protection Insurance (PPI) were turned down have been granted a temporary extension by the Financial Services Authority (FSA).
The city regulator has given customers who recently made a complaint about their purchase of PPI, increased time to refer their problem to independent disputes arbitrator, the Financial Ombudsman Service.
The temporary rule, which suspends the existing six month time limit for referring complaints to the Ombudsman, came into effect from May 28th and will run for five months, until 27th October.
However, the extension only applies to recent PPI complainants, those who have already been sent a final response from an accused financial firm between 28th November 2009 and 28th April 2010.
Intended as a safety net for those who took out loans and credit cards but could not meet the payments due to unforeseen circumstances, such as losing their job or illness, PPI has received much controversy in recent times with many consumers claiming they are being abused by financial firms and stung by inflated prices.
Recent figures show that 60% of PPI claims launched against banks and other firms have been rejected, yet, 90% of those passed to the Financial Ombudsman have been overturned in the customer’s favour.
Those who feel they have been mis-sold PPI in the past few months should seek advice on how to claim against financial institutions straight away and take advantage of the FSA’s much-welcomed extension.
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