Expect a lot of PPI payouts in 2013
2013 will see a record number of people getting payouts from banks over the misselling of PPI policies, after the Financial Ombudsman Service said it reckons that it'll resolve almost three times as many cases as 2012.
The FOS expects to sort out 245,000 cases in this financial year, compared to the 90,000 it has dealt with in the current one.
Tony Boorman, deputy chief ombudsman, said: "Two years after the court ruling confirmed the approach that financial businesses should take when handling PPI complaints, it's disappointing we are still seeing significant numbers of unresolved disputes about mis-sold policies being referred to the ombudsman."
"While we see some businesses using complaints positively to improve customer service, many continue to frustrate their customers with delays and inconvenience. This has a marked impact on our workload."
In addition to this, the FOS is going to start charging banks £550 (instead of the previous £500) for each case dealt with, not to mention the upfront fee of £350 for each case, which is on top of the £550. If there's one thing we can all take from this, there's small joy to be had knowing that banks will know how irritating it is to be hit with hiked-up charges for no reason.
"Our proposals ensure we have the resources to tackle these record case volumes, and the businesses responsible for generating the biggest workload contribute the most to sorting it out," Boorman said.