According to the latest figures from the Financial Conduct Authority, refunds of PPI compensation have increased year-on-year by almost £100 million.
Since January 2011, the Financial Conduct Authority has maintained a register of how much PPI compensation is refunded to consumers each month. The latest addition to the register shows that in May £390.4 million was paid out by banks and other credit providers in refunds of PPI compensation.
This brings the total amount of refunds of PPI compensation paid out so far in 2015 to £1.985 billion – almost £100 million more than was paid out at the corresponding stage of 2014 (£1.886 billion) – and the total amount paid out since the Financial Conduct Authority started its register to more than £20 billion.
The year-on-year increase in refunds of PPI compensation implies that the volume of PPI complaints being made by ripped-off consumers is not declining as quickly as was forecast; although some of the increase could be attributable to the re-assessment of previously under-settled claims or disputes being resolved in favour of the consumer by the Financial Ombudsman Service.
The Ombudsman is due to release its first half year report in the near future, when it will be revealed how many unresolved PPI complaints still require investigation. In January this year, the independent arbitrator revealed that there was a backlog of 280,000 complaints to be resolved and that new complaints may take up to eighteen months to resolve because of their increasing complexity.
However, there was better news regarding the PPI complaints procedure last week, when it was revealed that the Financial Conduct Authority had approved the Ombudsman´s application for certification under the “Alternative Dispute Resolution (ADR)” directive. Once certified as an ADR, the Ombudsman will have to resolve disputes within a ninety day period.
Although the certification does not take effect until July 2017, the Financial Ombudsman Service will have had to clear it desks of all disputes lasting longer than ninety well before then and will be working hard to resolve the current backlog of complaints as quickly as possible – enabling more consumers to receive their refunds of PPI compensation in the near future.Read More