FOS Under Pressure as PPI Complaints Rise
The Financial Ombudsman Service (FOS) has reported that complaints about mis sold payment protection insurance (PPI) have risen to unprecedented levels in the last year. The FOS dealt with over two million complaints about a range of financial products, with almost 400,000 of those relating to mis sold PPI. The figure of 2million amounts to 7000 per day, which simply confirms the sheer amount of pressure the FOS has come under thanks to the ongoing scandal. It managed to investigate half a million complaints during the period.
PPI Claims on the Rise
According to FOS figures almost 75% of all cases investigated in the year 2012-2013 related to mis sold PPI, an increase of more than 90% over the previous 12 months. The increase is put down to a variety of factors including the High Court ruling that banks must pay back wronged consumers, and increased consumer awareness of the right to claim PPI thanks to the ongoing media coverage. Online media in particular has been pushing the scandal, and there are no signs that the numbers of claims are likely to fall in the foreseeable future. Indeed, it may be that there are more to come, thanks to proposed changes to the claims procedure.
Talk of a Deadline
There is talk at the Financial Conduct Authority (FCA) of a deadline for PPI claims, to be introduced at the request of some lenders from April, 2014. However, some lenders are wary of going down such a route, as they believe it will simply lead to an influx of further claims by people rushing to get theirs in before the deadline arrives. Such a situation could cause serious problems with lenders already feeling the pressure and needing to take on outside help to process PPI claims. It is not yet know if a deadline will be imposed.
The Benefits of Using a PPI Claim Company
Many commentators are advising that customers simply contact their bank to discuss a refund, yet there have been many instances of lenders stalling on payouts. This is why many consumers choose to use a PPI claim company to process their claim, as they find the expertise and know-how makes for a less stressful time during the claims process. The PPI saga is quite rightly referred to as the worst to hit the UK banking industry in history, and may yet run for years.