The head of the Financial Ombudsman Service has suggested that the number of speculative payment protection insurance claims being made is not as large as some people are suggesting.
Writing in the September/October 2012 edition of Ombudsman News, the FOS newsletter, chief ombudsman Natalie Ceeney said: “I’m not seeing anything that suggests that consumers are more likely to make a speculative claim now than in the past.”
Lloyds’ corporate affairs director Matt Young said in early November 2012 that up to 50% of the PPI claims it receives from CMCs are ‘bogus’. However, the FOS has disputed some of the assertions made by high street banks regarding the scale of the issue. It believes that only 2.5% of the PPI cases it receives are ‘frivolous and vexatious’.
In late October 2012, Ms Ceeney told the BBC’s Watchdog that in one quarter of cases where the bank rejects a claim saying that the client did not have PPI, the investigations of the FOS had revealed that such a policy did exist.
It is vitally important that claims management companies monitor their claim and rejection rates to avoid action being taken by the Claims Management Regulator.