“Financial Ombudsman’s PPI Claims Will Decline in 2014-15 from 400,00 to 270,000”

Financial Ombudsman Service

#AceDebtNews says according to the latest Financial Ombudsman Service (FOS) newsletter they have forecast volumes of payment protection insurance (PPI) complaints will decline in 2014-15 as it indicated banking and credit complaints are becoming increasingly complex.

PPI ClaimsIn its proposed plan and budget for the next financial year, FOS revealed it expects to resolve a record 320,000 PPI cases, reducing its stock of PPI grievances from 400,000 to 270,000 but warned numbers are likely to remain “substantial”.

The ombudsman announced it intends to tackle 64,000 new banking complaints in 2014-15, as well as another 150,000 new PPI cases at the same time as reducing its budget by 20%.

Tony Boorman, interim chief executive and chief ombudsman, said: “For the last few years our focus has been on building up our capacity to meet the unprecedented challenges of PPI.

“The investment we have made in scaling-up and developing our service is now paying off as we plan for another year of record activity, resolving twice as many PPI cases as we receive. But we’re not out of the PPI woods yet.”

FOS admitted there had been times in the past two years when the organisation received more than 12,000 PPI disputes a week, although numbers have now fallen to around 6,000 cases a week.

The organisation confirmed banking and credit complaints continue to make up the largest area of its work, although the number it has received so far this year is around a quarter lower than it had assumed in its budget for 2013-14.

It warned many of these types of cases are becoming more difficult to resolve as consumers face financial pressures and lenders remain under cost pressures.

FOS has also seen an increase in the number of cases related to various types of short-term credit, including payday loans.

Boorman added: “Across all of our work we continue to hear that people’s dealings with financial businesses remain strained, suggesting a lot more work is required to restore consumer trust in financial services.”

The ombudsman also set out how it will fund its workload, with the announcement it will freeze the case fee paid by businesses at £550, payable only after the 25th case, and will no longer charge businesses the £350 supplementary case fee for PPI complaints.

But FOS warned of a potential shortfall in income for its consumer credit work during 2014-15 and 2015-16, as businesses transfer to the Financial Conduct Authority, which has said it may not recover a levy from companies until 2016-17.

FOS intends to use its consumer credit jurisdiction surplus of £1.7m to offset this and suggested that should a shortage remain it may need to see this recovered through future levies paid by consumer credit firms in 2016-17.

Ace Debt Management Services says: #GetOutOfDebtWithoutBorrowingMoreMoney  

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Latest Data of Complaints Handled by the Financial Ombudsman Services

Financial Ombudsman Service Adam Christian Debt Management Services – latest report on the Financial Ombudsman Service recently releases the latest six-monthly complaints data relating to individual financial businesses – including the high street banks and insurance companies.

The data published on the ombudsman‘s website details complaints handled by the ombudsman service between 1 January and 30 June 2013. This includes:

  • the number of complaints received about individual financial businesses; and
  • the percentage of complaints the ombudsman upheld in the consumer’s favour against those businesses.

During the six-month period, the ombudsman service took on a record number of 327,035 new complaints – an increase of 15% on the previous six months. Over 95% of these cases came from 195 financial businesses – out of more than 100,000 businesses the ombudsman covers.

Complaints about payment protection insurance (PPI) made up more than eight out of ten (86%) of the total complaints referred to the ombudsman during the first half of 2013 – with 266,228 new PPI complaints (compared to 211,885 in the last six months of the 2012). Five financial services groups accounted for 78% of all new PPI cases.

For complaints about financial products other than PPI, the total number of complaints referred to the ombudsman reduced by 15% from 71,366 to 60,807 during the first six months of the year. This involved a decrease of 22% in banking complaints and 3% in insurance cases.

Across all individual businesses included in the data, the uphold rate (where the ombudsman found in the consumer’s favour) ranged from 2% to 98%.

Commenting on the complaint statistics released today, Natalie Ceeney, chief executive and chief ombudsman, said:

During the first six months of this year we sorted out a record number of complaints for people – making real progress in tackling the customer-service fallout from the mis-selling of PPI, widely accepted as the largest financial mis-selling scandal.

Disappointingly we are still seeing cases where businesses are not following our long-standing approach to PPI, resulting in long waits and unnecessary delays for consumers.

But, more positively, we are seeing encouraging signs from some major businesses that are starting to recognise the value of getting things right for their customers – with an increased focus on sorting out problems and concerns as quickly as possible.

Look at the complaints data now available on individual financial businesses.

http://www.ombudsman-complaints-data.org.uk/

Adam Christian Debt Management Services – Report

Following a recent phone call to their offices in the last few days to chase-up one of the ongoing claims for PPI that was mis-sold to one of our clients, l was told by their offices that in fact they have over 500,000 ongoing cases, but they are getting through the back-log at an average of 100,000 every three months! The average wait for a claim at the present time is between 12 and 18 months, dependant on the complexity of the case!

There is simple requirements to submit your case to the Financial Ombudsman Service and these l will cover in a future post, that will highlight from beginning to end how easy it can be to claim ,without losing any money to claims companies, also how difficult it can be made to look.

This report update was just to show the latest figures, if you are one of the unlucky ones to have a case that has been referred or sent to their offices.

Regards, Ian K Draper – Guest Post

 Adam Christian Debt Management Services

The official body of people that govern the issuance of consumer credit licences and their use!

The official body of people that govern the issuance of consumer credit licences and their use!

Licensed under the Consumer Credit Act 1974            

 

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