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Lloyds employ 1,000 to address false PPI claims

False claims for payment protection insurance (PPI) are so common that Lloyds bank has been forced to employ a team of 1,000 staff to address the problem.

Industry regulation dictates that banks and building societies must treat each case as if it is genuine, even if they suspect that it is bogus.

Lloyds have now spoken out against claims management firms, saying that half of the cases which they offer are “erroneous”, and accusing them of wasting time and money by doing so.
1,000 staff at Lloyds are dedicated to dealing with fake and incorrect claims, sometimes even on behalf of individuals who are not even their customers.

Many mutuals and building societies also feel that they are also being unfairly targeted, despite the fact that they only account for 4% of all complaints.

One Building Society had 32 complaints regarding the mis-selling of mortgage PPI over a three month period, of which only one customer held a policy with them.

Last August the Ministry of Justice warned that any claims management firms found to be submitting a large number of claims where there was no PPI policy would come under investigation. Despite this however, research by the Building Societies Association found that bogus claims has risen by 247% in the six months to April.

Adrian Coles, director-general of the Building Societies Association, said earlier this month: “If anything. some claims management firms have stepped up their irresponsible, speculative scattergun approach to non-sale claims… Looked at from the perspective of our highly-regulated sector, some claims management companies look remarkably like the modern day equivalent of highwaymen.”

It also found that in 57% of cases brought involving claims management firms, no PPI policy had ever been sold.

This was posted in Bdaily's Members' News section by Ruth Mitchell .