How Much Has The FOS Struggled Over Payment Protection Insurance?

December 17, 2015
by admin in PPI News

The Financial Ombudsman Service is a free consumer service that mediates consumer-finance industry-related troubles. The FOS earns through banks paying for administrative fees with every product defect claim they have rejected. From 2011, a large portion of these product complaints was payment protection insurance.

The organisation increased its PPI workload soon after Lloyds was found to have mis-sold hundreds of thousands of consumers payment protection insurance.

In 2013, the organisation faced the gigantic peak of the scandal handling over 8,000 PPI complaints on a weekly basis. Then-Chief Ombudsman Natalie Ceeney increased the workforce threefold to face the ever-increasing workload from PPI.

In a way, the FOS is affected by the lack of a PPI deadline. It would continue to increase its workforce based on predictions. A deadline guarantees a number lock for its ranks.

Early February this year, the FOS had a workload wherein 65 per cent is made up of mis-sold payment protection insurance. About 60 per cent of the number were all in favour of consumers.

Now, as the deadline approaches, the FOS is bracing to possibly increase its workforce to handle all the complaints effectively. It is also in talks with the British Bankers Association as the increasing number of financial product complaints aside from PPI is threatening consumer trust.