The PPI Claims Finish Line Is Still Miles Away

January 13, 2015
by admin in PPI News

According to the Financial Ombudsman Service, it would take years before the PPI scandal is finally over for the United Kingdom. Chief Ombudsman Caroline Wayman said that numbers are slowly declining, but it would take years before one could say the mis-selling scandal is officially over.

Mis sold PPI and other financial product complaints against banks and credit card companies still amount to 4,000 weekly.

In 2012, at the peak of the PPI claims scandal, there had been 12,000 complaints weekly.

The total compensation package of the UK financial industry is now at £23 billion. The FOS has handled 1.25 million complaints in total for mis sold PPI.

Wayman said that the total number of complaints have begun to stabilise. Despite the slowdown, the FOS will hire 200 adjudicators and ombudsmen to handle the workload.

PPI is an insurance product sold in the 90s alongside loans, mortgages and credit cards. It pays off loans when holders get sick, have an accident or get unemployed. Due to the nature it was sold, many customers who did not need the insurance ended up paying for the insurance believing it as an insurance requirement.