During the last three months of 2017, the Financial Ombudsman Service tallied a total of 147,775 PPI complaints. It was 50% lower than 2012’s peak complaint number, but it was a sign that activity will pick up early 2018 with the Financial Conduct Authority’s PPI claims deadline in full implementation.
The FCA had helped raise awareness regarding mis-sold insurance policies through a commercial featuring the animatronic model and voice of Arnold Schwarzenegger urging people to take action.
Meanwhile, the FOS prepares by increasing its workforce and optimizing its procedures to ensure the hundreds of thousands of complaints from last-minute consumer receive address promptly without “bottle-necking” the entire pipeline.
The FCA has also ensured banks will optimize their processes to avoid slowdowns. Until the deadline, banks who do not practice efficient complaint procedures will receive immense penalties from the watchdog.
According to FOS Chief Caroline Wayman, the Ombudsman’s workforce must deal with 3,000-5,000 complaints by 2019. It anticipates the immense number of last-minute claimants during the deadline year.
So far, the PPI scandal has accumulated £40 billion in mis-sold policies with over half the value refunded to consumers. Post-deadline, consumers might find it more difficult to make a PPI complaint against banks and financial institutions.