The Financial Ombudsman Service has revealed that PPI Claims (payment protection insurance) increased dramatically over the past 6 months to September.
Yo Yo Financial Reporting
The last article we ran on PPI reported that PPI Complaints had dropped according to the FCA…. Confused?
The FCA is duty bound to report statistics, the previous article mentioned above was on the 1st half of the year startistics based on the 2nd half of the previous years reports. What has made this rather ludicrous is that financial reporters and news created sensationl headlines that PPI Claims have dropped.
As we correctly pointed out, as other news article did not was correlate the statistics quaoted with current statistics coming from the FOS and FCA.
Mis-Selling PPI Scandal: Financial Ombudsman Sees 149% Surge
The Financial Ombudsman Service has revealed that the number of complaints about payment protection insurance has rocketed over the last six months to September.
FoS, which intervenes when banks and their customers cannot reach agreement, disclosed that it received more than 247,000 grievances about payment protection insurance between April and September – a 149% jump on the same period the year before.
The revelation raises the prospect that banks will have to pay out more in compensation.
Banks have so far set aside £16bn ($25bn, €18bn) to deal with the most expensive consumer scandal in British history but the industry’s executives fear the total amount could hit a staggering £20bn.
Troubled lender the Co-operative Bank, for example, is boosting its mis-sold PPI compensation pot by £100m following revised expectations on redress payouts.
According to a statement by the Co-operative Bank, the extra compensation provisions will not affect the amount it needs to boost its balance sheet, after regulators found a £1.5bn capital black hole in its finances.
PPI was originally designed to provide loan repayment cover, should the customer fall ill, lose their job or have an accident.
However, millions of customers complained after saying that they never wanted or needed the policy in the first place.
According to Financial Conduct Authority data, the issue of PPI garnered the most complaints about banks between January and June 2013.
Some 1,786,626 complaints were opened during this period and PPI accounted for 61% of new complaints.
PPI Claims News
PPI Claims are falling according to regulator
Complaints about PPI Claims have fallen for the first time in three years according to the Financial Conduct Authority (FCA). In the 1st half of 2013 1.8 million PPI complaints were recieved compared to 2.2 million PPI complaints recieved in the previous 6 month.
However reports like these need to be questioned based on figures reported previously from the FCA within the 1st half of the year.
PPI Complaints to Cost the Banks an extra £400m in fees to FOS
Banks in the UK are set to be charges an extra £400m in fees by the Financial Ombudsman service (FOS) for dealing with PPI complaints. The FOS charges a standard fee of £550,00 per complaint regardless of whether the complaint is upheld against the financial insitution or not.
Our Successful PPI Claims featured on BBC1 – Ripoff Britain
Ripoff Britain on BBC1 with Gloria Hunniford, investigates mis sold PPI and one of our succesful clients, Steve White, discusses his PPI Claim.
We have provided a transcribed version of the Clip below
Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
Latest posts by Tim Capper (see all)
- PPI Claims Currently Show No Sign of Slowing Down - December 10, 2014
- Swaps (IRHP) Determining the Level of Redress - November 3, 2014
- FCA updates PPI redress for 2.5 million old PPI complaints - October 27, 2014