PPI complaints to the Ombudsman are likely to continue for years according to the Budget & Planning Report for 2015 released by the Financial Services Ombudsman.
The Budget and Planning Report for 2015 reveals that the number of PPI complaints to the Ombudsman has fallen from a peak of 12,000 per week in 2012; but that the independent financial disputes arbitrator still has 280,000 complaints outstanding from customers who claim to have been unfairly treated by their banks and credit providers.
More than 87% of complaints to the Financial Services Ombudsman relate to unfairly rejected claims for PPI compensation, a failure to deal with claims in a timely manner, or an incorrect calculation of compensation; and although the arbitrator employed 2,000 extra staff last year to deal with outstanding PPI complaints to the Ombudsman, the intention is to employ a further 200 staff in order to reduce the backlog of complaints to 180,000 by the end of 2015.
Writing in the Budget and Planning Report for 2015, Chief Ombudsman Caroline Wayman commented “As we work through the unprecedented number of PPI cases we have received over the last few years, it is clear that we will be dealing with the fallout of PPI for several years yet. Complaints about PPI are still the main driver of financial disputes, and although the numbers are declining, it will be years before we can truly say that this misselling scandal is over”.
Ms Wayman told reporters “Our plans take into account the increasingly hard-fought and complex nature of the cases we are seeing – not only in PPI but also in areas like mortgages and pensions”. She added that more than 4,000 PPI complaints to the Ombudsman are still being received each week – with the majority being upheld in the customer´s favour.
Martin Wheatley – the Chief Executive of the Financial Conduct Authority (FCA) – has said that he expects credit providers who missold PPI to treat claims for PPI compensation fairly and pay the correct amount of compensation when it is due to their customers. In August, the FCA ordered a review of more than 2½ million claims for PPI compensation after it was revealed that credit providers had been unfairly rejecting claims for PPI compensation or incorrectly calculating the value of PPI refunds.Read More