PPI scandal ‘still rumbles on’

Picture: PA Photo/thinkstockphotos.
Picture: PA Photo/thinkstockphotos.
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COMPLAINTS relating to payment protection insurance (PPI) halved over the last year but the scandal is set to rumble on for another few years, the Financial Ombudsman Service warned today.

The independent arbitration service said the number of PPI disputes fell last year to just under 205,000, from a record high the year before.

But it added that “the continuing heavy volumes of entrenched PPI disputes could still take years to work through”.

Overall, it said it answered 1.8 million inquiries and resolved 448,387 cases in 2014/15 involving financial firms and their customers, with PPI accounting for two-thirds of all complaints.

In 2014/2015 the ombudsman received 7,856 calls from people living in Yorkshire because they were unhappy with how they had been treated by a bank, insurer or lender.

Of these, 4,999 went on to become complaints that the ombudsman had to investigate. Altogether, 1,960 complaints related to PPI, the ombudsman said.

A spokesman for the Financial Ombudsman Service said: “We’re currently finding in the consumers’ favour in 56 per cent of cases that are referred to us from Yorkshire, this means that in over half the cases we look at we agree that the business has not treated the consumer fairly and tell them what to do to put things right.”