PPI News

Ombudsman Overturning Up To Three-Quarters of Disputed PPI Decisions

September 2, 2014

According to a report from the Financial Ombudsman Service, up to three-quarters of disputed PPI decisions are being overturned in favour of the consumer.

The latest report from the Financial Ombudsman Service reveals that disputed PPI decisions – most often complaints to the Ombudsman about the unfair rejection of PPI claims – are running at “significant levels” despite an overall fall in the number of cases accepted for investigation during the first six months of 2014.

Compared to the second half of 2013, when the Ombudsman received 193,054 complaints about disputed PPI decisions, 133,819 complaints were accepted for investigation – with the Lloyds Banking Group once again being the most complained about financial institution in the UK.

In the first six months of the year 26,209 PPI-related complaints were received about Lloyds Bank PLC (formerly Lloyds TSB), 24,134 PPI-related complaints about the Bank of Scotland and more than 2,500 PPI-related complaints about other entitles within the Lloyds Banking Group.

This represented almost 40% of the disputed PPI decisions received within the six month period, and it was significant to note that 73% of disputes between customers and Lloyds Bank Plc were found in favour of the consumer – higher than the overall average of 64% of complaints being resolved in favour of the consumer.

Chief Ombudsman, Caroline Wayman, said: “Responsibility for sorting out the mass mis-sale of PPI is still the major part of the Ombudsman’s workload. But during the first half of 2014 there’s been a marked change in the type of complaints consumers are asking us to resolve – as underlying attitudes become more entrenched and the issues involved get more complex”.

She continued: “We’re seeing more and more people turn to us in frustration where they feel their bank or insurer simply doesn’t understand or really care. And we’re hearing growing dissatisfaction from people about being processed industrially as a number rather than being listened to as an individual customer”.

Ms Wayman added that the volume of disputed PPI decisions could be reduced if credit providers communicated their decisions to their customers with more clarity. She said that by giving their customers more thoughtful and considerate responses, banks could sort out many of the problems at an earlier stage and prevent disputed PPI decisions being escalated to the Ombudsman.

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