What Part Does the Financial Ombudsman Play in PPI?
The PPI mis-selling has brought many companies and organisation to the public’s attention. One organisation is the Financial Ombudsman. But who are they and what does this organisation do?
What is the Financial Ombudsman?
It is the organisation that is independent of both government and the financial industry that looks at complaints from customers about financial products and services. They will look at a complaint if the customer feels the banks has resolved it.
It doesn’t just deal with PPI but all financial products sold by main stream banks and lenders in the UK.
How is the Financial Ombudsman involved with PPI?
Claiming compensation for mis-sold PPI has a chequered history. With many twists and turns, the saga of PPI, the banks, compensation and their customers has been a rollercoaster ride.
After many years of bitter arguments, the banks realised that they had to compensate their customers.
But, in the early days, compensation was not always so forthcoming as it is and customers, realising that they were being duped once more, began to exercise their full consumer power.
What this meant was, when the banks refused compensation for mis-sold PPI, customers took their case to the Financial Ombudsman and asked them what they thought.
The Ombudsman upheld the majority of consumer complaints – in other words, agreeing with the consumer – in 7 out of 10 cases.
And it still does today.
The current situation
However, despite the substantial number of cases still being referred to the Ombudsman, over the years the banks have realised that refusing to pay compensation was denting their trustworthiness.
Needing to start scraping back this trust from consumers, they began to pay the ‘right’ compensation.
What FOS the Ombudsman is now saying is that some of these cases being referred to them are no longer about the banks simply digging their heels in.
They are cases that are more complex in nature. On one hand, you have the bank wanting and needing to protect the money it is lending to people whilst balancing the needs of the consumer to be able to look for another product, other than the PPI the bank were ‘offering’, to protect their interest too.
A long process
It is still a process that is taking up to 12 months or more. Referring your PPI compensation claim to the Financial Services Ombudsman is not a quick fix.
With PPI Scotland, if compensation refused by your bank or lender, we try our very best to push for a resolution on your behalf, especially when we understand that you were mis-sold the product.
But, in some cases, where we believe the case is strong enough and you want to pursue your claim, we will refer your case to the Ombudsman.
Only in cases of severe financial hardship, will they look at cases out of chronological order. Hopefully, your case will not need to be taken to the Financial Ombudsman Service - why not see if you have a claim by contacting Payment Protection Scotland now?