The Financial Ombudsman Service (FOS) recently stated that they potentially receive 1,500 PPI claims per day from millions of UK customers who were mis sold PPI. While this was a 129% increase from the amount of PPI mis sold last year, the FOS and certain industry analysts saw no signs of slowing down. They mentioned that the end of PPI claims is still quite far away.
From January to June 2012, 2.2 million claims were processed by the FOS. According to the consumer group Which?, PPI mis selling is the biggest financial scandal in the United Kingdom’s history. They also warned banks and financial institutions to set aside more compensation money as their reserves might run out by the end of the year.
Barclays recently set aside £2 billion for compensation claims. Lloyds had reserved £4.3 billion and last Monday had guaranteed £700 billion for PPI compensation claims. Other banks have an average spending of £1.3 to £1.5 billion in PPI spending. The total cost of the PPI compensation package has reached £10 billion this year alone and has the potential to reach £13 billion by the end of the year.
Analysts state that even if the FOS has reached their 500,000th claim, it is still a small number compared to the population of mis sold in the United Kingdom. Industry analysts state that at the PPI crisis might definitely end by the year 2016 should the personnel in the FOS increase, new PPI claims processes become easier and faster and banks become more cooperative and avoid delaying their customers.