PPI Complaints Set To Dominate In 2013

Online, January 5, 2013 (Newswire.com) - Unscrupulous UK banks and lenders have been forced to reserve more than £12bn to repay the customers who they mistreated and Mis-sold Payment Protection Insurance to.

This trend looks set to continue into the New Year according to the Financial Ombudsman Service. Millions of Britons made their complaints to the FOS and Claims Management Companies last year and as the scandal receives more and more coverage in the media, 2013 could be even bigger and the financial implications more profound.

The FOS has already branded 2012 its 'busiest year ever' and the PPI complaints as the 'biggest mis-selling scandal [of all time]'. After receiving over 200,000 enquiries and complaints, the FOS expects PPI to dominate its attention for many years to come. The increase in workload has led to the FOS requiring an organisation and size alteration.

Financial Ombudsman Service Chief Executive, Natalie Ceeney revealed: "We have adapted to deal with this [PPI], doubling in size in the last year to keep pace with the demands on our service. As a result we've been able to help more people than ever while maintaining the level of trust they have in us.

"We have fully trained an additional 500 case assessors who are dedicated to dealing with PPI disputes and we're gearing up to ensure we have the right people in place to deal with the ongoing volume of complaints across all areas next year.

"Earlier this year we set out plans to allocate costs in a more transparent and fairer way among the larger businesses, while lifting many smaller businesses out of paying case fees altogether.
"As usual, we will publish our full plans for 2013/14 - along with our proposed budget - for consultation in January."

The FOS and Claims Management Companies have been helping affected Britons reclaim PPI from banks and lenders since a court ruling went in their favour in 2011. The product was sold in credit card and loan agreements by many banks and lenders without the request or requirement of the customer.

If a customer was Mis-sold PPI without requesting or requiring the product then they may be entitled to claim significant compensation from the guilty bank or lender. It is estimated that there is still more than £3.5bn left to be claimed by Britons.