The damaging effects of the PPI insurance claims scandal continue to dog the UK banking industry, with the worst hit being the massive Lloyds Group. Having been forced to set aside billions of pounds in order to pay back mis-sold PPI fees, Lloyds recently found itself at the centre of another embarrassing scandal. The bank, like many others, has had to employ third party operators to handle claims, and an undercover reporter at a site run by Deloitte for Lloyds uncovered serious problems with the way claims were being handled.
Told to ‘Play the System’
The reporter, working for The Times newspaper, claims that staff at the centre were told to ‘play the system’ as most first-time claimants would not bother returning if they experienced delays or were rejected first time around; they were also, he alleges, told to ignore possible fraud by Lloyds staff. Deloitte insists its staff were operating within the given guidelines, while Lloyds has confirmed that its contract with the company has been terminated.
Fined for Delays
Earlier this year (2013) Lloyds was fined £4.3million for delays in processing PPI claims. In the second half of last year the Financial Ombudsman, which deals with claims remaining in dispute, dealt with over 42,000 complaints relating to Lloyds alone; this is by far the biggest figure for any of the banks or lenders involved in the PPI scandal. Indeed, more people than ever before are turning to a PPI claims company to have their claim processed, an indication that the banks are perhaps not able to handle claims efficiently. For help or advice, go to www.PPIClaimsAdviceLine.com.
More to Come
Despite the hope that claims would begin to tail off during 2013 the saga shows no signs of going away; although numbers are down slightly on 2012 the Ombudsman still receives 2000 complaints every day, a figure that has made it necessary to employ 2000 further staff to handle the problem. Likewise, the banks are turning to third party providers such as Deloitte out of necessity, and this simply adds to the problems in making sure the regulations and rules are strictly adhered to.