The payment protection insurance (PPI) saga continues for the financial ombudsman as it generates them more that 550 complaints a day, amounting to two thirds of its overall workload.
According to the Financial Ombudsman Service, the number of new PPI complaints has peaked. It fell to 204,943 in the year up to March, compared with 399,939 in the year before. The service does say that claims management companies and customers are still continuing to raise disputes.
Banks have paid out £18m
Following the High Court ruling back in 2001, banks have paid out £18bn worth of compensation for people who were mis-sold the PPI product. The banks solved most cases, but if there’s a disagreement, this is when customers ask the ombudsman to step in.
Caroline Wayman, the chief ombudsman said: “The world has moved on and changed significantly since I first joined the ombudsman as an adjudicator in 2001. Yet our workload over the last 15 years has been constantly dominated by the past – clearing up the fall-out of the mass claims and mis-selling scandals of the last decade and a half.
“But 15 years of sorting out millions of these problems have given us unparalleled experience, knowledge and understanding of why complaints happen – and how they could be avoided in future.”
Before the deluge of PPI complaints the ombudsman had around 100 staff. Since the ruling, they have increased to a massive 4,000 strong to deal with the sheer amount of complaints. It has investigated 1.8m enquires and resolved 448,000 cases so far.