The BBC reports today that the Ombudsman is receiving hundreds of PPI related complaints per day. Why is this significant ?. The Ombudsman deals with complaints that cannot be resolved between complainant and the financial institution, are the banks digging in their heels with regards to PPI Claims.
Full BBC Article :
PPI claims in hundreds each day, says ombudsman
The financial ombudsman service is taking 1,500 new claims for payment protection insurance (PPI) compensation every day, figures show.
Complaints numbers have totalled 400,000, but remain only a “drop in the ocean” compared to all PPI complaints.
The ombudsman deals with cases that cannot be resolved between a consumer and financial institution.
It has found in favour of the consumer in seven out of every 10 cases it has dealt with.
PPI was sold along with loans and credit cards, wrongly in many cases, to cover repayments if people became ill or lost their jobs.
Banks are in the process of paying out £9bn in compensation to borrowers who were mis-sold PPI.
Many banks, building societies and consumer groups have criticised the claims industry.
Some claims management companies have encouraged people to claim, whether or not they were mis-sold a policy or even had one. Then they charge consumers a fee of 25% of any payment, plus VAT.
This has also increased the workload of the financial ombudsman. Inquiries about PPI have grown to 2,500 a day since the start of the year, the latest edition of Ombudsman News revealed.
However, only 5% to 10% of all PPI complaints ever make it to the ombudsman, the service said.
It has upheld complaints such as pressure sales, mis-selling, and sales when customers would not be eligible for the insurance anyway. These have led to £200m in compensation payments.
PPI Claims News
Banks rejecting legitimate PPI Complaints
The recent increase in PPI complaints being recieved by the FOS is a direct results of Banks rejecting increasing numbers of legitimate PPI complaints being sent to them. The FOS has upheld 8 out of 10 PPI complaints forwarded to them.
This 80% of upheld complaints by the FOS highlights how the Banks are increasingly rejecting valid PPI complaints being made by customers.
PPI Complaints still rising for the Financial Ombudsman
A record 86% of all complaints made to the Financial Ombudsman service is about PPI mis-selling. In the first half of the year a reported 266,228 PPI complaints for mis-selling have been lodged.
PPI complaints show no sign of slowing down. We have recently reported that Barclays was recieving an estimated 1,500 PPI complaints per day, The FOS was recieving upwards of 2,000 PPI complaints per day in July
This backs up the theory that only around 1 in 10 people have actually made a PPI claim based on their mis-sold policy. With figures like these, we can expect to see PPI complaints rising for a while longer.
PPI Compensation payments boosting the economy
The Office of National Statistics has released figures suggestiong that the £10 billion in PPI compensation payments that have been made is boosting the economy.
This is nothing new in March we published an article where an analysis by Which? showed that UK consumers paid out £50 billion for PPI protection since 1996. The article also highlighted some other PPI statistics provided by the ONS :
The Financial Ombudsman Service (FOS) has been buried by more than 600,000 complaints about PPI since 2000. Nearly half of those complaints have been filed since July1, 2012. Between that July date and the end of December in 2012, 283,251 complaints have been filed with the ombudsman. That was an increase of 110 percent over the previous six months.
Monthly PPI Claims Payouts for July 2013 is £ 528 m
The Financial Conduct Authority (FCA) released its latest totals on monthly PPI Claim Payouts. July 2013 totals for PPI repayments was £528 million which brings the total of PPI Claims repayments made sine January 2011 to £11.5 billion.
The figures are collected from 26 firms and financial institutions that made up for 96% of all the Payment Protection Insurance complaints from last year.
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
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