90 per cent of all Payment Protection Insurance mis-selling claims that had previously been rejected by lenders, are now being upheld by the Financial Ombudsman Service.
As previously reported on Simply Business, lenders have faced censure over their PPI selling practices. Egg last year received a massive fine, and the Competition Commission has recently imposed new rules on lenders.
However, according to the Ombudsman, customers wishing to reclaim the money they are owed are being "fobbed off" by lenders, with goodwill gesture payments being made in place of proper compensation.
Brunel Franklin, a claims company dealing with PPI cases, told the Guardian that RBS are routinely making £750 "goodwill payments", while the true value of the average case is £2,000. As such, customers are losing out to the tune of more than £1,000 on each and every claim.
The Financial Ombudsman Service is encouraging PPI claimants to reject these payments, and instead hold out for a fair settlement.
