Drop in percentage of PPI cases upheld by Financial Ombudsman

//Drop in percentage of PPI cases upheld by Financial Ombudsman

Drop in percentage of PPI cases upheld by Financial Ombudsman

Author Lauren Howells

According to new statistics released by the Financial Ombudsman Service (FOS), the percentage of payment protection insurance (PPI) complaints upheld from April to June 2017 has dropped, when compared to the same period last year.

During the period of April until June 2016, the FOS reported that 57% of PPI cases had been upheld. When compared to April, May and June this year, the percentage of cases upheld had dropped to 40%.

Drop due to FCA considering ‘Plevin’

Following the case of Plevin v Paragon Personal Finance Ltd, decided by the Supreme Court in 2014, the Financial Conduct Authority (FCA) had been working to come up with some new rules and guidance on the court’s judgement.

The FSO said that they “didn’t resolve as many complaints” as they would have done otherwise and reported that they ended the financial year 2016/2017 with about 170,000 PPI complaints, the majority of which were affected by the judgement in the Plevin case.

However, the FSO said they had worked hard to give everyone who had complained to them an initial answer regarding whether they thought their PPI policy had been mis-sold.

What does the Plevin case mean for me?

The Plevin case

In essence, the Plevin judgement has meant that what could be deemed as misselling of PPI has widened and consumers may now have “new grounds to complain”.

The Supreme Court judgement means that consumers may be able to claim back some money if 50% or more of their PPI premium was given to their lender as commission and this hadn’t been disclosed to them.

As part of the FCA’s new rules and guidance, it requires all firms to write to those who have previously had their complaints rejected, who may be eligible to complain because of Plevin.

If you think you could be due to a refund from PPI misselling, there’s more information on the FCA website about how you can make a complaint.

Complaints deadline 29 August 2019

Back in March 2017, the FCA confirmed that the final deadline for making new PPI complaints will be on 29 August 2019.

Andrew Bailey, Chief Executive of the FCA said: “Putting in place a deadline and campaign will mean people who were potentially mis-sold PPI will be prompted to take action rather than put it off. We believe that two years is a reasonable time for consumers to decide whether they wish to make a complaint.”

PPI “most complained-about financial product”

The FOS described PPI as “the most complained-about financial product”, with 42,401 new cases in April to June this year. In fact, PPI accounted for 53% of the complaints in this time period, followed by current accounts, which represented only 6% of consumer complaints to the FOS.

The FOS also reported an 89% rise in complaints about consumer credit in 2016/2017. This included products such as hire purchase, payday loans and catalogue shopping. It also revealed that complaints about credit cards had increased by 17%.

By | 2018-05-30T10:07:21+00:00 August 17th, 2017|Personal Finance|0 Comments

About the Author:

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After completing her law degree, Lauren decided to follow her passion for writing. She regularly contributes articles to CLNews on personal finance and general consumer topics.

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