........ as claims flood in to beat deadline


The Financial Ombudsman anticipates it will resolve 360,000 PPI cases in 2017
To date, UK banks have paid out £24billion pounds worth of compensation
PPI plans were designed to cover loan repayments in the event of sickness

Complaints over mis-sold payment protection insurance schemes are set to reach record highs next year, the Financial Ombudsman has revealed. The independent body anticipates it will resolve 360,000 cases over 'worthless' PPI plans in 2017-18, which were originally designed to cover loan or credit card repayments in the event of an accident or sickness. The FOS said it believes the number of complaints it receives in the next financial year will be 'heavily influenced' by a proposed deadline for PPI complaints. To date, banks including Lloyds and RBS have collectively paid out £24billion worth of compensation in what has become Britain's costliest financial services scandal.

The cover was routinely sold alongside loans, mortgages and credit cards in the Nineties and early Noughties.It promised to pay out enough to meet repayments if a customer fell ill or lost their job. But many did not realise they had signed up for the cover at all. Others would never have been able to claim because they were self-employed or had certain medical conditions that were excluded in the small print.

The FOS, which clears up disputes between consumers and financial firms, said it expects to have resolved 170,000 PPI complaints across the financial year 2016-17. The service has received 1.6million complaints about PPI in total - and it still gets around 3,000 new complaints a week. The Financial Conduct Authority launched a consultation in August on whether to effectively set a mid-2019 deadline for people to make a claim for being mis-sold PPI. It is due to make a further announcement about this in the first quarter of 2017 after considering feedback.....Read more here

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