A Guide to the Financial Ombudsman Service and PPI Claims

Posted on March 4, 2019 by Canary Claims A wooden review stamp leaning against a stack of PPI forms

The Financial Ombudsman Service independently reviews PPI cases rejected by banks and lenders. Do you need it to review your case?

When researching information about PPI claims, you might come across the Financial Ombudsman Service (FOS). But what exactly is the FOS and what is its role within PPI claims?

This guide offers an outline to what the FOS is and how to refer your case should you need to. Canary Claims is a trustworthy PPI claims company that has been operating since 2005. As such, we’ve helped hundreds of customers submit cases to the Ombudsman.

Remember, the PPI deadline is 29th August. You must submit your PPI claim to the bank before this date or else you lose the opportunity to find out if you’re due a refund. Don’t miss out.

The Role of the Financial Ombudsman Service

The Financial Ombudsman was created by Parliament to act as an independent public body to resolve disputes between consumers and financial services. It aims to resolve disputes “fairly, reasonably, quickly and informally.”

Within PPI claims, the role of the FOS is to review any cases rejected by the bank. It will look at each case and decide if the bank made the right decision based on the evidence.

Is the PPI Claims Deadline Valid for FOS Claims?

If the bank rejects your PPI claim and you want the FOS to review it, you must refer your case within six months of receiving the outcome from the bank. However, you must make sure you submit any PPI claims to the bank before 29th August 2019. If your claim is sent before the deadline but resolved afterwards, you will still have six months from the date of your result to contact the Financial Ombudsman.

Submitting Your PPI Claim to the Financial Ombudsman

There are a number of reasons the bank might reject your PPI claim, including a lack of evidence or insufficient reasoning for it being mis-sold. However, many banks have been known to wrongly reject PPI claims.

If the bank rejected your claim but you believe that you have a strong case, you can send it to the FOS for a final review. You will need to include all of the relevant evidence that you submitted to the bank during your claim and state why you think the bank is wrong.

If you worked with a reputable PPI claims company, such as Canary Claims, it will able to submit the claim to the FOS on your behalf.

How Long Will a Claim at the FOS Take?

Due to the extreme number of PPI claims made over the past decade, the Ombudsman has a large backlog of claims to process. As such, PPI claims at the FOS can take up to two years to be resolved.

According to a recent whistleblower report, 30,000 cases are still waiting to be assigned to an individual Ombudsman. Some people have waited up to two years for their cases to be resolved. The FOS has received countless bad reviews, with many arguing that it has taken the side of the lender, rather than the consumer.

Unfortunately, you have no way of knowing how long your wait will be if you refer your PPI claim to the FOS.

Can You Trust the FOS?

If you read online reviews of the FOS, you will see very negative feedback. In 2018, a Dispatches documentary about the organisation highlighted internal problems. Despite this, it may still be worth submitting your PPI claim. Between January and June 2018, the FOS resolved 29% of PPI complaints in favour of the consumer — meaning a portion of banks do incorrectly reject cases.

If you take a closer look at some of the statistics, some banks are worse than others. For example, in the same half of 2018, HFC Bank Limited had 71% of its PPI claims upheld by the banks. This high percentage could indicate a higher chance of success if you refer an HFC PPI claim to the FOS.

How to Get Started with a PPI Claim

If you haven’t yet started your claim, you must act before the Financial Conduct Authority (FCA) deadline of 29th August. You can make a claim yourself or use the services of a PPI claims company. The whole process can take up to six months, which is why it’s important to act soon.

The hardest part is usually trying to locate the paperwork with evidence of mis-sold PPI. If you no longer have the paperwork, there are many ways to identify policies:

  • Ask the bank if it still has a record of any policies sold with previous financial products, such as mortgages, loans and credit cards.
  • Work with a reputable PPI claims company, which will investigate any old policies.
  • Conduct a credit check to see what financial products were active in the past six years (this won’t inform you about PPI policies, but it can tell you about lenders you may have forgotten).

If you locate your paperwork — or a claims company does so on your behalf — and there is evidence of a PPI policy, you can claim. But it’s important to state how the policy was mis-sold to you. One of the reasons the banks reject claims is a lack of evidence and reasoning. Be sure to include this. Many individuals never realised they had a PPI policy because it was added automatically or they were told it was compulsory with the product.

The clock is ticking, so find out before 29th August if you’ve been affected by mis-sold PPI. If necessary, you may need to refer your case to the Financial Ombudsman Service.

Canary Claims is one of the best PPI claims companies. If the bank rejects your claim, we can refer it to the Financial Ombudsman Service. Remember to submit all of your PPI claims before the deadline. Contact us today to start your PPI claim.