According to the Financial Ombudsman Chief Tony Boorman, the 190,000 in the second half of 2013 was a great improvement compared to the over 260,000 payment protection insurance complaints received by the Ombudsman in early 2014. However, Boorman said that the numbers are still “depressingly high.”
FSCS Chief Executive Mark Neale said that PPI still has not reached its peak and it may take a few years until it does. Neale said that the FSCS, which also handles recompensing consumers mis sold PPI and addressing other troubles concerning financial products, had increased the number of PPI complaints it receives by 21%.
PPI or payment protection insurance helps consumers repay loans, mortgages and credit cards in case they get sick, have an accident or get unemployed. An average PPI costs £2750.
Citizens Advice condemns that claims management companies had pocketed £5 billion from persuading consumers to have them reclaim their refunds under a no win no fee* basis. Their research indicated that some claims handlers do not make clear the fee structure of their service. However, reputable claims management companies, such as Payment Protection Insurance Claims Co, said that all MOJ-regulated companies follow the contingency fee arrangement.
The MOJ had recently laid off 200 rogue claims management companies suspected of cold-calling and unsolicited text message sending.