The Financial Ombudsman Service (FOS) have seen a high number of complaints in the last couple of months reaching to roughly 3000 in a month as opposed to the usual amount they would normally receive which was around the 1000 mark. Therefore the banks have already had to pay a staggering £557 million in the past 6 months alone to those who have won there cases. The PPI reclaims will increase over the coming months.
The FOS has upheld 9 out of 10 PPI cases in favor of consumers, with an average amount of compensation payments around the £2,750 figure. Payouts vary from £200 to more than £10,000 depending on individual’s cases.
The banks are prepared for the rising PPI claims because some of the main branches have already set aside high amounts of money to pay the compensation. They have already seen 532,000 people make a PPI claim in the first half of the financial year.
Natalie Ceeney, the chief financial ombudsman, expressed in a recent newsletter that ‘these numbers are pretty upsetting’ and they may need to recruit more staff to deal with the number of complaints they are seeing.