| PPI, PPI Refund, PPI Scandal

PPI Complaints Exceed 3,500 Per Week: Ombudsman

Since the PPI scandal was unfolded, thousands of mis-sold buyers have been approaching the lenders to get back their refunds on time. However, majority of the lenders have not been able to handle this overload of complaints, which results in a delay or rejection of claims. Following this, all the rejected customers approach the Financial Ombudsman Services (FOS), which is an independent body that deals with solving issues between the mis-sold customers and the lenders.

Over the last year, the Financial Ombudsman Service had released an annual review and revealed that they had been receiving more than 3,500 cases every week relating to PPI.

Complaints regarding mis-sold PPI comprised of more than 56% of the total complaints last year, which has now resulted in PPI making up almost half of the 1.5 million complaints that FOS received since it was established in 2001.

Another area on this rise of complaints is the Packaged Bank Account (PBA), being the second most complained about category right behind PPI issues, according to the report. The PBA reports have doubled since the last year as customers are becoming more familiar with the grounds of mis-selling, thanks to PPI.

However, it is evident that certain parts of the country are more aware about the issue than the others, statistics from the FOS report show that around 68% of the PPI complaints have been made from the north-eastern region of England, while only 2% of the PBA complaints are received from the same region.

Increasing scrutiny from regulatory bodies such as the FCA has ensured the fact that heavy financial penalties and fines are being administered to the lenders who don’t tend to follow their strict guidelines. However, the Ombudsman’s report showed concern about the ongoing nature of how PPI complaints are dealt with by certain firms.

The reports clearly states that disappointingly, they found that there are still many businesses who are rejecting complaints where it should have been clear that the policy was mis-sold to the buyers.

The Ombudsman was set-up under Financial Services and Markets Act of 2000 in order to resolve the disputes arising between consumers and financial institutions.

Now, majority of the complaints and clams coming to the FOS comprise of PPI refunds and compensation claims. This has put the Ombudsman into a lot of pressure of solving the cases on time, while more cases keep pouring in every single day.

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