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Archive for tag: Financial Ombudsman and PPI Claims

Financial Ombudsman Still Inundated with PPI Claims

Could yours be next?

The payment protection insurance (PPI) scandal has left British banks and lenders footing a £37 billion compensation bill. And this amount is set to escalate according to the Financial Ombudsman Service (FOS) who revealed that they are still being inundated with cases claiming PPI compensation from disgruntled customers.

The first half the year saw FOS deal with over 91,000 PPI complaints, a shortfall of only a thousand on the figure for the same time in 2015.

It had been a long held belief that there would be a dramatic drop in PPI compensation claims through FOS but this has proved to be wrong. PPI complaints peaked some years ago but they have been receiving 3,000 complaints a week for the last six years.

FOS also say that the issues and uncertainties around PPI still remain a challenge for all involved, including themselves.

Deadline

The banks have long been lobbying for a PPI compensation deadline, a date by which time anyone intending on claiming their money back must do so. Initially reluctant, the Financial Conduct Authority (FCA), The City regulator, has decided that this is possibly the best course of action to jolt customers out of apathy.

That said, the FCA has stunned the banks and lenders by suggesting a deadline of June 2019, a date that is over 2 and a half years away, a larger slice of time that the banks had hoped for. They were keen on a sooner date, possibly the spring on 2018.

Increase in provisions

This later date of June 2019 will no doubt mean that banks and lenders will have to put aside yet more cash into their PPI compensation funds, something that will continue to hit their profits.

But who did customers complain about most when it came to PPI compensation claims? The figures released by FOS show that the majority of complaints they dealt with relating to PPI in the first half of 2016 related to Lloyds and its subsidiary, Bank of Scotland. The combined group saw 33,984 PPI complained, compared to 9,371 PPI regarding Barclays, 6,975 at HSBC and 2,756 at Nationwide.

The uphold rate has changed slightly, from 7 in 10 claims being upheld, to 6 in 10 complaints being found in favour of the customer.

Is your case one of them?

Before you submit a complaint about PPI to FOS, you first need to approach the lender or bank that you believed mis-sold PPI to you.

If you are unsure how to do this, why not call Payment Protection Scotland now?