The Financial Ombudsman Service (FOS) is a mediating organisation that aims to resolve issues between consumers and financial institutions. The ability to resolve issues is crucial to restoring confidence in the financial sector. The PPI scandal has dominated the FOS’ workload in the last six years. As the scandal comes to a close in 2018, here are three things the FOS did to help consumers and banks at the height of the PPI scandal.
The FOS had increased its workforce by the end of 2011 and had doubled its employees by the second quarter of 2012.
The workforce increased after the Supreme Court ruled in favour of the then-Financial Services Authority’s proposition to streamline all PPI complaint procedures against the banks who lodged a legal challenge against the move.
Called Out To Banks (In A Proper Way)
The FOS former Chief Ombudsman Natalie Ceeney had called out to banks for rejecting proper claims. Lloyds, the biggest mis-seller of PPI, had 8 out of 10 rejected complaints ruled in favour of consumers. Ceeney pointed out during the time that banks had ‘dragged their feet’ in resolving consumer complaints. It had also published statistics indicating other rejected complaints found legitimate by the organisation against other banks.
The service is also noted for having no charges. The FOS charges banks in question to process the complaint. In a way, they have contributed to the increase in administrative charges for payment protection insurance claims.