According to the Financial Ombudsman application for ppi claims are set to hit record numbers in 2017. The Financial Ombudsman told reporters that it expects to recieve over 350,000 ppi cases in 2017, which would be an increase from the numbers that the Financial Ombudsman had to deal with in 2016.
To date, since 2016 when the UK major banks who were responsible for the mis-selling of payment protection insurance to it’s customers have paid over nearly £25 billion in compensation to it’s customers, making PPI the biggest mis-sold financial product in UK history.
PPI was originally designed to help out people to cover repayments for loans if that person became ill or was unable to work. But in the majority of cases PPI insurance was a worthless insurance product, mis-sold by the banks to it’s customers purely for profit.
thisismoney.co.uk reported that an expected ppi deadline for 2019, may further increase the numbers of people making ppi claims.
The FOS, which clears up disputes between consumers and financial firms, said it expects to have resolved 170,000 PPI complaints across the financial year 2016-17.
The service has received 1.6million complaints about PPI in total – and it still gets around 3,000 new complaints a week.
The Financial Conduct Authority launched a consultation in August on whether to effectively set a mid-2019 deadline for people to make a claim for being mis-sold PPI.
It is due to make a further announcement about this in the first quarter of 2017 after considering feedback.
Ahead of the proposed deadline, there would be an awareness-raising drive to alert consumers who might have cause to complain about PPI.
The FOS said it is possible this campaign might also raise consumers’ awareness about their right to complain generally, and as a result it could also see more complaints about products other than PPI.