The Financial Ombudsman have received a larger number of PPI complaints than expected during the end of 2015.
With the Financial Conduct Authority’s potential deadline looming closer, the Financial Ombudsman Service predicts it will receive a ‘higher than expected’ number of PPI complaints by March 2016.
Although the large number of complaints is a daunting thought, the FOS said it’s more realistic having a predictable workload in the future.
The peak of the scandal was in 2013 and the Financial Ombudsman have stretched its workforce because of the increasing number of PPI complaints.
The FOS are essentially having to do the banks ‘dirty work’ when they delay resolving consumer claims. The Financial Conduct Authority has begun discussing the potential ending of the PPI scandal after research showed that about 60 per cent of consumers do not even bother to claim due to the unending nature of the scandal.
The Financial Conduct Authority is currently trying to figure out the best way to end PPI scandal- the biggest financial loss in the UK’s history. They are presently consulting with claims management bodies, consumers and institutions who may have mis-sold the Protection Insurance, and the FCA should come to a decision by 2016.
As you can imagine, the banking industry is very pleased with the FCA’s move as it could potentially draw a line under the unpredictable and seemingly never-ending scandal that has cost the industry billions. Although the deadline has the potential to lead to an increase in PPI complaints in the short term- it should lead to a more predictable workload and a scandal free future in terms of PPI.