| Claiming PPI Compensation, PPI

Banks Battle With The Ombudsman For PPI Claim Staff

Since more than a decade, the Ombudsman has been receiving loads of complaints regarding the claims for PPI refund.

As more and more people came to know about the fact that they were mis-sold the policy, they started registering complaints with the Ombudsman. Till date, even after several years, it is still receiving hundreds of complaints on a weekly basis. As the staff working with the Ombudsman is limited to take care of these ever-increasing cases, it has resulted in a delay in the cases getting solved.

Due to this, the Financial Ombudsman Service (FOS) has been seeking to add about one third more staff to its books in order to deal with the huge heap of complaints and claims coming pouring in on a daily basis, regarding the PPI claims. The surge in the number of PPI complaints received by the FOS has primarily been caused by the commercial banks who refused to entertain the claims of mis-sold customers and other financial institutions involved in the scandal.

The customers would only approach the FOS if their refunds were not issued on time or if their complaints were rejected on unfair grounds.

Banks are now causing issues by poaching the existing staff working at the Ombudsman. Moreover, the poached experts are being made to switch to the opposite team, which means that they would be working on the very same PPI claims and complaints that the FOS would be handling, the only difference being that this time they would be on the banks’ side. This is largely happening because of the bigger pockets that the commercials banks have.

The remuneration packages that the banks offer are enough to outstrip that provided by the FOS to their staff, which is largely funded by a mix of case fees and an industry levy.

To try and level the playing field a little, the FOS now expects to case the fees this year, in spite of freezing both case fees and industry levy for three years in a row.

So once again, the financial impacts of the banks’ behaviour have had repercussions, which are way beyond the individual institutions’ profit and loss accounts.

Through the way of pushing up the adjudicator’s fees for the FOS, the banks will be effectively pushing up the amounts that they are required to pay in the case fees, when a chargeable case is brought against them.

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