Financial analysts predict that the PPI crisis may finally end by 2016, based on the current speed of claims processing by banks and the Financial Ombudsman. The FOS recently stated that it is handling at least 1,500 claims a day, which is entirely “plugging up” the entire claims process. Banks blame claims management companies and the Financial Services Authority for the high number of PPI claims coming in on a daily basis.
Natalie Ceeney, the chief FOS ombudsman, stated that CMCs and the FSA are not to blame for the fiasco as the banks themselves started the entire ordeal. She states that CMCs are the reflection of mistrust that customers have with their banks regarding PPI. Ceeney also points out that the FSA only advised banks to call customers and invite them to make a claim if they find themselves ineligible for the insurance policy, and given the mis selling of PPI, the best way to know if they’re mis sold is by contacting the lender directly or employing a no win no fee PPI claims company.
Some claims management companies have been warned to advertise the PPI claims process correctly as some customers become confused about their claims and instantly make a claim when unnecessary. However, many reputable claims management companies have upped the effort and stated that they are only “customer helping hands” that they can count on if they have numerous claims. They state that a customer can handle one or two claims, but having three or more than four can be problematic.
Currently, the banks have set aside £13 billion in compensation for the mis selilng of PPI in the United Kingdom. Analysts see that banks want “to get this done with”, which makes the process faster. As fraudulent claims decrease, the analysts estimate that around 2015 to 2016 would be the end of the PPI crisis.