Britain’s Financial Ombudsman Service (FOS) is still getting more than 600 complaints every working day about mis-sold PPI more than a decade after the scandal first came to light.
In its annual report, the service reveals it received 168,769 new PPI complaints in 2016/17. This was more than 10 years after the Citizens Advice super complaint to the Office of Fair Trading in September 2005 gave us the first inkling of the scope of what has become one of Britain’s biggest ever financial mis-selling scandals.
PPI is still more than half of FOS’s annual workload. Second in popularity were complaints about current accounts – a total of 38,299 of which 20,284 were about packaged accounts.
The service upheld 52% of PPI claims in favour of the consumer, but only 19% of packaged bank account claims.
Chief ombudsman Caroline Waynman commented in the annual report: “In 2016/2017, we were still seeing the impact of past unfairness on a mass scale. Even given the increases we’ve seen elsewhere, PPI accounted for over half of the total complaints we received.”
Quality director Richard Thompson revealed 83% of PPI cases still waiting to be resolved by FOS are linked to the Plevin Supreme Court decision which pronounced that PPI could also be mis-sold if the consumer was not made aware of the amount of commission paid on their single premium policy.
PPI claims deadline
The new rules and guidance from the Financial Conduct Authority (FCA), including Plevin, will come into effect in August at the same time as the two year consumer awareness campaign for the FCA’s PPI claims deadline which has been set for August 2019.
Mr Thompson said: “The publication of the FCA’s guidance is undoubtedly good news for consumers and businesses waiting to move forward with their PPI complaints, but there’s still a fair amount of uncertainty.
“We don’t know how many more people will complain as a result of this. And we don’t yet know how claims management companies, who bring the majority of PPI complaints to us, are going to react.
“I’m confident that, even if the end may be some way off, we’ll ensure everyone with concerns about PPI gets a fair and final answer.”