Consumers in Exeter are missing out on £34.3m of financial mis-selling compensation
Exeter consumers are missing out on £34.3 million worth of compensation for the mis-selling of PPI policies simply by failing to reclaim what is rightfully theirs. If other financial products were included, such as mis-sold endowment mortgages and savings and investment products, the final amount due to consumers in the region would be even greater, warns Exeter-based EMCAS.
The leading claims management company, which specialises in helping individuals to recover compensation for mis-sold products, is urging adults in the South West region to take action now to find out if they have a justifiable claim. Its research shows that over 22,500(22,538) people in the Exeter area are either unsure if they can claim for financial mis-selling or have no idea if they have been mis-sold a product or not. The company is highlighting the fact that if they choose not to take action the financial services industry will have succeeded in getting away with decades of mis-selling.
Research released today by EMCAS, highlights that financial mis-selling remains a significant issue and hundreds of thousands of consumers in the South West alone are not reclaiming their money. Those who have been mis-sold a product but have yet to make a claim could be missing out on substantial amounts - the average payout for a mis-sold PPI claim is £2,650. Worryingly, those consumers who are making claims are experiencing delays as banks refer increasing numbers of cases to the Financial Ombudsman Service.
David Walter, spokesperson for EMCAS said: “Our primary concern remains that victims of financial mis-selling reclaim what is rightfully theirs. The voice of consumers needs to be heard above that of the banks.
“Our evidence shows that there are still significant sums of money due in compensation yet 18% of consumers in our region aren’t even aware if they are a victim of financial mis-selling. We encourage anyone with doubts about a financial product sold to them to check and be sure. Whilst consumers may face a number of obstacles when making a claim we would urge them to persevere to right these wrongs.”
Consumers are inundated with news about mis-selling but those in the South West who feel they might be entitled to a payout are still not taking action to reclaim their money for a number of reasons:
· 54% are confused if they can make a claim or not
· 17% haven’t thought properly about whether they have a claim
· 15% don’t feel they have enough knowledge to make a claim on their own
· 8% say they don’t have enough time.
Payment Protection Insurance
When it comes to Payment Protection Insurance banks are still underestimating how much consumers could potentially claim. Whilst many have recently increased the amounts they are setting aside for compensating consumers, it’s still not sufficient to compensate for the estimated 6.9 million mis-sold PPI policies in the UK, of which there are approximately 552,000 in the South West and over 12,900 in the Exeter area. Based on average payouts this could amount to over £34.3 million locally and £1.46 billion for the South West region as a whole.
Despite the large amount left to claim and the media hype surrounding PPI, consumer confusion still reigns and people are still not reclaiming what’s rightfully theirs. PPI was an add-on to a broad range of financial products such as loans, credit cards and mortgages and was often added without the customer’s knowledge. This adds further confusion for customers when they are trying to find out if they may have been mis-sold to.
Endowment Mortgages
Experts at EMCAS estimate that there still many people with endowment mortgages across the region who could claim for mis-selling, despite increasing numbers of cases being time-barred. Consumer redress has been limited by this, however the company encourages consumers not be put off and to persevere with their claims.
Savings and Investments
On average, there are 85,000[iv] complaints in the UK about mis-sold savings and investments products every year. The average claim being paid out is worth over £1,000[v]. The FSA’s recent mystery shopping survey revealed that around a quarter of sales being made to consumers could be unsuitable. As a result consumers do still need to be vigilant when taking out a financial product to ensure it is suitable for them.
David Walter continues: “Banks have yet to fully acknowledge the extent of the money they need to repay consumers who have been affected by mis-selling.”
“At EMCAS we aim to help consumers identify whether they have been a victim of mis-selling and may have cause to make a claim. Our expert teams are able to help customers navigate the process and ensure that they get the right pay out due to our experience of managing claims on a day-to-day basis. We urge all consumers who think they may have been mis-sold a financial product, to claim back what is rightfully theirs whether this be with the support of a professional claims management company like EMCAS or on their own.”
For more information about how EMCAS can help you to make a claim for financial mis-selling please visit: www.missing-millions.co.uk
