Payment Protection Insurance Will Hit Record Highs In 2017 According To The Financial Ombudsman
The Financial Ombudsman Service (FOS) is preparing its personnel for a bigger wave of payment protection insurance claims in 2017. The Ombudsman believes the Financial Conduct Authority’s appointed June 2019 PPI claims deadline is responsible for the possible influx of insurance complaints.
In its proposed plans and budgets for 2017-18, the Financial Ombudsman Service believes there would be about 360,000 PPI complaints during the year that will need resolution — having it allocate enough budgets based on the overheads of the expected numbers. In 2016-17 alone, the FOS has resolved 170,000 PPI complaints
The FCA’s advertising campaign — funding £42.2m from banks to advertising agency M&C Saatchi — could raise awareness regarding PPI claims and the possible deadline for PPI in 2019. With only two years to go, consumers may come in huge waves with an individual PPI claim that could overload the FOS’ system if it does not prepare itself.
The 2019 deadline is hotly debated. According to consumer campaign group Payback Time, UK’s banking industry will save £20bn with the deadline. The group’s hypothesis is backed by data of recent bank allocations for payment protection insurance refunds. Other consumer groups are also against the resolution of PPI claims with a PPI claim deadline with Which? commenting that the UK government intends to force consumers to make a claim instead of having banks make things better as it is the industry’s fault.