Banks have again been criticised for dragging their feet on reimbursing customers who had been mis sold payment protection insurance.
The Financial Ombudsman Service (FOS) has confirmed it now has 130,000 cases regarding mis sold PPI currently on its books, more than double the 60,000 cases resolved in the financial year 2010/2011, and is now consulting on plans on how to cope.
Principal Ombudsman, Tony Boorman said:
“A year after the High Court ruling gave us legal finality on the approach that financial businesses should take on PPI complaints, it’s disappointing that there’s little finality for significant numbers of consumers who are still waiting for their bank or insurer to deal with their complaint.
“The delays and inconvenience that this causes consumers means the ombudsman now has to gear up for the unprecedented demand and volatility in our workload.”¹
This high number of PPI complaints is likely to account for half of the FOS’s workload.
However, anyone who is considering making a claim for compensation for a mis sold payment protection insurance should not let these delays deter them.
Lenders have earmarked an estimated £9bn collectively to cover the cost of payment protection insurance, mis sold to customers who did need, want or even know about it.
If you have taken out a loan or credit card in the last 10 years, you could have been mis sold payment protection insurance. Complete our no obligation online claim form to find out.
¹This is Money (Jan 2012)
Content correct at time of publication