Banks will be paying out PPI for years to comeAug 28, 2017
Banks are set to continue paying out compensation to customers as the claims continue to stream in to the FOS who are currently receiving up to 4,000 complaints every week.
Currently over 87 per cent of the work undertaken by the FOS relates to PPI cases, who predict they will help resolve a further 250,000 PPI related complaints over the next two years.
With these predictions in mind, the Financial Ombudsman Service (FOS) are set to hire a further 200 staff to deal with the ongoing number of PPI disputes.
Within the budget and planning report the Financial Ombudsman Service Said:
'As we work through the unprecedented number of PPI cases we have received over the last few years, it is clear that we will be dealing with the fallout of PPI for several years yet'.
Up to last year the banking industry paid out approximately £16billion in three years from the £22billion set aside for the mis-selling of payment protection insurance, according to figures released by the Financial Conduct Authority.
The FOS are an independent service set up as a result of the Financial Services and Markets Act 2000 and help settle disputes between businesses providing financial services and their customers.
Although currently the vast majority of the work undertaken by the FOS relates to PPI, the FOS also deal with complaints involving banking and credit, with packaged bank accounts attracting an ever-growing number of complaints.
Caroline Wayman of the FOS said:
'Complaints about PPI are still the main driver of financial disputes.
'And although numbers are slowly declining, it will be years before we can truly say this mis-selling scandal is over.
'Our plans take into account the increasingly hard-fought and complex nature of the cases we are seeing - not only in PPI but also in areas like mortgages and pensions'