Huntswood provides a proactive, efficient, and cost-effective solution for handling PPI claims to help financial institutions mitigate damage, reduce costs, and restore customer trust. Their solution involves proactive customer outreach, a customer support team to quickly validate and resolve claims, and complaint handling to process claims and provide redress, saving up to £5 million per year. Financial institutions can outsource the entire end-to-end claims process or elements to Huntswood to enhance customer experience, reduce costs, and rebuild trust in their brand.

1. A proactive, efficient, cost effective, customer-focused solution for handling PPI claims Discussion Document June 2011

2. Huntswood can help companies mitigate the financial and reputational damage caused by PPI claims and reduce costs The judicial review on PPI means approximately 3 million customers are entitled to claim circa £9 billion in mis-sold cover Banks and other financial service institutions are ramping up their claims-handling centres to deal with the massive increase in complaints. It’s estimated an additional 6,000 complaint handlers will be needed In addition to the spiralling costs associated with processing the claims and recompensing customers, the reputation of financial service companies is once again taking a battering Huntswood has a solution that will: reduce the cost of handling claims (by as much as £5 million pa) help restore customers’ faith in the financial services sector (and their bank/credit card company/loan provider in particular) diminish the influence of claims management companies (CMCs) by helping the Ministry of Justice build a case against them reduce the time it takes to receive, process and resolve a complaint/claim

3. Financial service organisations have got to win back trust Financial service companies have agreed they’ll pay out customers if they have a legitimate claim £2,000 is the average pay out to customers making a PPI claim Question - so why do 9/10 claimants prefer to go to a CMC rather than contacting their provider knowing that they’ll have to hand over typically 25% (£500 on average) of their claim? Answer - customers have lost faith in their providers. Despite organisations such as Which? and the Financial Ombudsman urging customers to contact their providers direct, there has been a breakdown in trust. Financial service companies can win back trust (and reduce costs): however they need to be proactive, make it simple to claim and have their redress handled quickly, accurately and effectively: “ Claims management companies can seem attractive to some because they appear accessible, simple and user-friendly. I believe there is scope for financial businesses, such as banks, to make their complaint-handling processes easier to use. The more user-friendly businesses are, the more consumers are likely to feel confident about raising any problems with them direct, rather than going through a third party.” Tony Boorman, Principal Ombudsman FOS

4. Winning back trust AND reducing costs – potential savings of £5m pa Proactive Customer Communication Make it easy for customers to make a claim (learn from CMCs) Send letters to potentially mis-sold customers with freefone no. & where to look on the company website Place open letters/adverts in publications read by your customers – urging them to contact YOU direct using a medium of their choice - freephone, letter, email, text, online (includes webchat), in branch Use social media (blogs/twitter) to spread the word Advertise on TV channels watched by your customers Have ‘pop ups’ on website encouraging customers to claim if they think they’ve been mis-sold PPI Customer Support Output from Proactive Customer Communication is handled by a team of industry-sector specialists whose role is to record: up-to-date customer contact details up-to-date account number reason for complaint customer recollection of buying process AND validate claim: yes (see adjacent boxes) no – revisit validation (‘best endeavours’ approach). If ‘no’ upheld, write to customer & advise Customer benefits? quick decision; choice of media; quality of service; full refund Company benefits? reduced costs (Customer Support cheaper than Complaint Handlers) confidence/trust restored able to build case against CMCs (‘have a go’ letters collected & sent to MofJ to build a case) Yes – two options Decisioning tool ‘pops up’ on screen & tells PPI Customer Support Representative (PCSR) to: - pass claim to Complaint Handling Team for processing (see below) OR 2. Decisioning tool advises PCSR to send straight for redress Option 1 With verification complete, claim can be processed in days rather than weeks; saving time & money. Customer’s faith is restored Option 2 Decisioning tool determines payment immediately – customer is delighted; money & time are saved

5. Where can Huntswood add value? Huntswood is recognised for its Complaint/Claims Handling experience. We already handle PPI complaints, manage claims and calculate redress for many of the UK’s leading financial service organisations We recognise that companies wish to restore confidence in their brands and bring back the trust that used to exist with their customers. However this can’t be at any cost… Huntswood’s solution of introducing PPI Customer Support means fewer Complaint Handling agents are needed: PCSRs are less expensive than Complaint Handlers resulting in savings of circa £5m pa In addition companies can make even greater savings by outsourcing the whole end-to-end operation to Huntswood including: Proactive Customer Communication, PPI Customer Support, Complaint Handling, Customer Redress Alternatively businesses may prefer to outsource elements of the solution Whichever option you choose, Huntswood provides a high-quality solution which helps restore trust in your organisation, enhances customers’ perception of the brand, reduces the time taken to handle complaints and significantly reduces costs

6. Philip Festa Director, People Learning & Development  07770 694 162  [email_address]