The payment protection insurance scandal has affected millions of people across the country. Consumers have been filing claims for several years, but they aren’t expected to subside anytime soon. A new report from the Financial Services Compensation Scheme found that the financial claims are expected to increase by 20% in the coming year. The report shows that PPI is the leading cause of the increase.
The recent report is discouraging for citizens that are held back by the PPI crisis. The FSCS feels that the increase will continue indefinitely. They believe that all financial claims will increase by 34,724 in the coming year. The report also states that claims will increase by 16,000 in the next year.
Most other experts have stated that PPI claims will continue to rise for the foreseeable future. The volume of claims has increased year after year. There are clearly many customers that didn’t realize that their banks had mis-sold PPI policies to them. The Financial Ombudsman Service believes that there are still millions of customers that intend to file claims in the near future.
The FOS has had a very difficult time keeping up with the growing number of PPI claims. The organization has had to hire additional staff to process the new claims that cross its desk. It has still fallen behind and needs to find new practices to handle claims more quickly.
The FOS said that it intends to process 90% of claims within three months. The organization hopes that it will be able to clear most of the backlog over time.
The FOS has had a difficult time keeping up with the growing PPI claims even as other financial claims declined in recent years. The FSCS recently predicted that claims against other financial institutions could actually increase in the near future. This can make it even more difficult for the FOS to handle the growing number of PPI claims. However, the new chief ombudsman is confident that the organization can handle the new claims.