12 March 2015
…or say the Financial Ombudsman Service (FOS), the body that deals with disputes between a customer and a financial institution. But what else do FOS have to say about the PPI mis-selling scandal?
Payment protection insurance (PPI) now have the dubious honours of being crowned the most mis-sold product in the history of British banking. Many customers were sold the product, told or implied that it would be a great policy for them when, in fact, it was all about profit and greed. In many cases, many customers did not need the policy and many more people did not realise they even had the policy on their account.
It is a huge case of mis-selling, on a scale unlike anything ever seen before. And with some banks still not compensating their customers the full amount - or outright refusing to compensate them for a mis-sold policy - FOS has been incredibly busy since the PPI compensation claims have started to roll in.
You could be forgiven for thinking that the number of people claiming compensation for mis-sold PPI is beginning to dwindle; looking at the figures you would surely think so but it seems that times are changing, but the banks still have a long way to go before the rumblings about PPI go away completely.
2012 was the busiest year for FOS with them dealing with over 12,000 cases A WEEK! As we enter 2015, the number of cases has dropped to 4,000 a cases a week, still a large number of cases for the organisation to be handling, especially when you consider that PPI complaints are only one strand, one product that FOS deal with! Complaints are still arriving on their desks relating to other banking and financial products too.
Overall, FOS have dealt with over a million complaints, relating specifically to PPI and the way it was not only mis-sold, but also the way in which the bank has handled many of the complaints customers have made to them.
With their staff numbers doubled in recent years, FOS are looking to swell their numbers again, taking on another 200 staff to keep the numbers of PPI complaints (and other cases) moving swiftly.
No, you must make every attempt to resolve the issue successfully with your bank first. This includes writing to them, telling them you believe you have been mis-sold PPI and that you are entitled to full compensation.
In most cases, banks have now realised to need with cases quickly and fairly but, there are still issues… hence, FOS predicts that it will be 'years before the PPI scandal is over!'