Running for half a decade, the refunding of mis-sold payment protection insurance policies had seen its peak in 2013 and saw a dwindling down in 2014. The Financial Conduct Authority and the Financial Ombudsman rushed to perform their tasks without fail. Both organisations admit to the difficulties they underwent in addressing the insurance claims.
The National Audit Office said the FCA is questionable for its non-productive actions regarding the payment protection insurance scandal.
According to NAO Head Sir Amyas Morse:
“The information my staff could see, such as customer complaints, does not show any clear reduction in the extent of mis-selling. The FCA cannot be confident that its actions are reducing the overall level of mis-selling, and it has further to go to show it is achieving value for money,” he said
The NAO has observed that Financial Ombudsman complaints now take three times longer to handle than in 2011-12. The FOS is dealing with fluctuating workload on an almost daily to weekly basis. Bad claims form fill-outs is the reason for most of hte rejected PPI claims from the FOS.
Currently, the Financial Ombudsman still has a 40,000-case backlog from 2011. The organisation believes it is possible all PPI cases could be finalised by July 2017.
Meanwhile, the UK banking industry has a bad record in dealing with PPI complaints. The NAO said banks have been inconsistent in the last five years of refunding consumers.
The FCA had welcomed the NAO’s report, saying it is acknowledging its shortcomings to help increase confidence in its consumers.