FOS Shows PPI Claims Drop for First Time in 4 Years

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FOS Shows PPI Claims Drop for First Time in 4 Years

The payment protection insurance scandal has been an ongoing problem for the past several years. Millions of people have filed PPI claims since consumers first learned of it. The Financial Services Compensation Scheme (FSCS) recently stated that PPI claims appear to have peaked. A spokesperson for the FSCS said that they dropped for the first time since 2010, but still remain elevated.

PPI Claims Start to Fall

The FSCS  reports that it received 12,000 PPI claims during the last fiscal year. While this figure is still very high, it was a sharp drop from the 19,000 claims that it received the previous year.

The FSCS states that it paid out approximately £243 million during the 2013/2014 fiscal year. The organisation’s most recent report shows that it protected about 34,000 consumers.

Focus on More Efficient Solutions

Mark Neale, Chief Executive of the FSCS, said that his organisation is dedicated to helping customers throughout the country. The FSCS attempts to help all customers in a timely manner, but some customers may need to wait for extended periods of time. The problems are expected to worsen in the future as more financial firms fail.

Neale said that the FSCS is looking for new ways to improve the quality of the service it offers customers. It plans to release new plans to make the service more efficient and improve customer service in the near future.

Report Raises Industry Concerns

Neale said that the organisation is pleased to have helped so many people. He said that it has protected people that had no other place to turn after firms filed for insolvency.

While the FSCS  serves a valuable purpose, many experts raised concerns about the fact that tens of thousands of citizens needed to utilize its services. The economic downturn has forced many financial institutions into bankruptcy. A number of consumers purchased PPI and other financial products from these companies.

All companies that are registered by the Financial Conduct Authority or its predecessor are covered by the FSCS. However, some customers may have purchased financial products from unlicensed institutions. These people are out of luck if the company goes bust.

 

COVID-19 ANNOUNCEMENT

MARCH 23RD 2020

At this time we are continuing business as usual however our team will now largely be working from home. This limits our phone contact availability. Customer support remains available Monday to Friday but please email in to info@oraclelegal.com with your query. We aim to get back to you within 48 hours. On receipt of PPI refunds our fees remain payable and can be paid via our website www.oraclelegal.co.uk/payments/ or via BACS. We are also working on some other areas of potential claim for you in connection with your PPI and will be in touch shortly where applicable to present this to you.

IMPORTANT:The last day we can accept a new claim is Friday 23rd August – midday – to ensure the paperwork is properly processed and lodged with your lender before the cut-off time.