According to the Financial Ombudsman, payment protection insurance dominates their daily workload. With over 250,000 complaints waiting for a decision, the Professional Financial Claims Association warned that Lloyds’ £117 million fine should serve as a “wake up call” for the financial industry to rebuild consumer trust.
The PFCS said that firms need three values to adopt. They intend to have banks make it a basic consumer protection program to consider complaint handling a large issue. The PFCS stressed that consumers who had suffered detriment must not suffer any more as they have the right to be treated fairly.
Almost 60% of all PPI claims the FOS handled were in favour of consumers. But the financial industry itself had failed to improve within two years as their figure stands at 57% in the last six months.
According to the PFCA:
“How does the industry help FOS? Clearly the Lloyds fine and FOS data shows that the industry has to do more to settle genuine cases without the assistance of FOS, which will mean FOS can focus on solving their backlog.
“The PFCA calls on the FCA to take further steps and issue renewed guidance focusing on the scrutiny of PPI complaint handling and, in particular, rejection processes.
“The FCA Lloyds decision notice confirms the use of independent ‘skilled person reviews’.
“Such reviews should become industry norm giving regular oversight to processes which currently appear to be broken. It seems that ‘what gets measured gets done’ and truly independent reviews are required to help rebuild consumer trust.”