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AMI promises to take up fake PPI claims with FOS

The Association of Mortgage Intermediaries is asking brokers to send it fictitious payment protection insurance claims they receive from claims firms so it can give them to the Financial Ombudsman Service.

Robert Sinclair, director of AMI, has been approached by a number of brokers who have received complaints from former clients saying they have been mis-sold PPI despite them never having sold the cover.

Sinclair says that in cases where brokers have not sold the product, they should not have the case transferred to FOS and be forced to pay the £500 case fee.

Sinclair says: “Where a complaint has been made that is malicious and the broker never sold PPI they should not be charged by FOS and I am happy for brokers to pass those com­plaints to me so I can take them up with FOS.”

Mortgage Strategy’s e-petition, Make Claims Firms Pay, has gained 412 signatures since its launch last month. It is calling for clams firms to be forced to pay a £500 fee to FOS for every mis-selling claim against a broker or financial adviser that is deemed to be without merit.

Sinclair says AMI is also keeping a close watch on the increasing number of mortgage com­plaints being made to FOS.

Figures out last week showed there were 2,796 mortgage complaints to FOS between July and September ­ up from 2,044 in the previous quarter ­ with 33% resolved in favour of the consumer.

Sinclair adds: “As the economy worsens, the complaints culture is only going to escalate.

“FOS has never had a major issue with mortgage complaints but if this area continues to grow we may have to speak to FOS and address the issue.”


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  1. If you get a complaint about PPI and it is fictitious, then you make this clear in the decision letter that you issue. If the complaint is truly ‘fictitious’, his should be one of the easiest letters you’ve ever written. The robust decision reduces the likelihood of the case being escalated to FOS.
    However, if it was escalated to FOS, you will then receive the request for your file. Your file will include your robust defend letter, and you can also request that that the case is dismissed.
    If, however, you are not in a position to respond to complainants or FOS appropriately (or you just don’t know how to), then what are the chances you’re doing the rest of job properly?

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