Over 50% of FOS cases concerned mis-sold PPI
by Luke Whitmore, 19th May 2011
The PPI scandal has pushed the number of complaints dealt with
by the Financial Ombudsman Service to record highs over the past
year, it has been revealed.
The watchdog's annual report, covering the 2010 - 2011 financial
year, revealed that they had dealt with more than a million
questions and problems sent in by consumers, with 20% of those
enquiries requiring FOS intervention.
And of those 20% of cases, over half concerned Payment
Protection Insurance, the loan insurance policy which has garnered
criticism from all corners due to the widespread mis-selling which
has plagued the banking sector.
The banks recently lost a court case against new Financial
Services Authority rules which obligate them to refund customers
who have been mis-sold PPI, with the scandal leading to provisions
of billions of pounds in compensation funds for wronged
consumers.
More than half of the cases which the FOS took on eventually
resulted in victory for the consumer, demonstrating the tendency of
the banks and many other financial institutions to dismiss
complaints even when the customer is in the right.
The FOS is now gearing up to cope with an anticipated deluge of
cases regarding Payment Protection Insurance, believing that many
of the banks are not prepared to handle the number of cases of PPI
mis-selling that they will soon be forced to deal with. There are
already issues surrounding the refusal of some banks to reconsider
cases which had been previously rejected, due to a loophole in the
FSA's new regulations which does not oblige them to take another
look at these cases.
Other problematic areas noted in the report included concerns
over the manner in which banks were marketing investment funds,
which it is felt has led many consumers to underestimate the risks
involved. It was also noted that complaints were on the rise
regarding specialised insurance policies, with a particular focus
on insurance of mobile phones.
If you suspect you may have been a victim of PPI mis-selling, we
can help you claim PPI compensation today.
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