FOS Continues To Receive Record Numbers of PPI Complaints

November 15, 2016
by admin in PPI News

The Financial Ombudsman Service reports having received an extra 43,000 PPI claims between July and September after banks initially rejected customer’s claims for compensation.

About 57% of the complaints forwarded from banks the Ombudsman ruled in favour of consumers

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Other complaints trailed with only a fraction of the number of PPI complaints. Packaged Bank Accounts — the second largest number of complaints aside from payment protection insurance — only have 5,317 during the quarter.

Experts said the figures remain an immense problem for the banking industry as complaints still continue to flood in.

According to New City Agenda, about £40bn had been set aside by banks to pay recompense to consumers mis-sold PPI policies since the 90s. Banks hired thousands of qualified employees to handle the complaints efficiently.

Banks have only about £25bn of the £40bn total creating dents in their profit margins.

Official figures from their quarterly profits report indicate that Lloyds had set aside a total of £17.1bn since the beginning of the financial scandal. Barclays has a total of £8.5bn; RBS with a total of £4.7bn and HSBC with about £2.9bn in total recompense amounts.