Large banking players caught out after claiming “lost” customer records

30th June 2017 Blog

A few of the large banking players have been caught out after claiming they have “lost” customer records and are therefore unable to settle payment insurance claims.

In April alone, 80% of Alliance of Claims Companies (ACC) to Blackhorse reported that the applicant’s details couldn’t be found. In addition, in April, HSBC rejected 42% of claims due to the same reason.

Executives of the ACC are questioning the coincidence of the spike in “lost” customer records. The PPI Policies were sold to cover loan repayments if the borrower wasn’t able to due to job loss or illness. Unfortunately millions were mis-sold alongside various types of loans, credit cards, store cards and Mortgages. In many cases, PPI was added without the customer’s consent.