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The Never Ending Story? PPI Complaints Jump 72% At End Of 2019

The deadline for consumers making complaints to businesses for mis-sold PPI was 29 August 2019. In light of that deadline, the Financial Ombudsman Service (“FOS”) received a 72% rise in complaints in the last quarter months of 2019. Data released last week showed the total number of PPI complaints in that period was more than 2 million.

ombudsman

Which? consumer rights expert Adam French said the surge in awareness caused by the PPI deadline, partly generated prompted by the FCA’s high profile advertising campaign last year, could have contributed to this rise in numbers, with consumers (some no doubt encouraged by claims farmers) submitting speculative complaints “just to check” as the August 2019 cut-off loomed.

Despite the surge in enquiries in the last quarter of 2019, only 16.5% of PPI complaints were upheld by the FOS in the period – a much lower number than in previous periods or for other banking or insurance products. Overall, that suggests that some of the recent complaints may have been ambitious, over egged or simply lacking in merit. But the FOS said it will still, in all likelihood, be dealing with PPI complaints until the end of 2020.

Looking more widely, whilst PPI compensation pay-outs to consumers (£40 billion since 2011) have been a drain on the UK banking industry, some commentators have argued that they may have actually buoyed up the British economy in recent years. George Buckley, Nomura’s chief economist, has estimated that the PPI deadline could actually trigger a 0.3% decline in consumer spending.

© Copyright 2020 Squire Patton Boggs (US) LLPNational Law Review, Volume X, Number 51

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About this Author

Garon Anthony Litigation Attorney Squire Patton Boggs Birmingham, UK
Partner

Garon is a partner in the Litigation Practice Group. He advises clients across the full range of commercial dispute issues, including cyber liability/data breach, professional negligence, banking, pensions and insurance.

Garon regularly acts for clients who are subject to investigations or disciplinary proceedings by national and international regulators, including most recently the Financial Conduct Authority, the Financial Reporting Council and the Dubai Financial Services Authority.

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Sarah Neill Associate   Birmingham Commercial Litigation
Associate

Sarah Neill qualified into the Commercial Litigation team in September 2019 after completing her training contract with the firm. During her time in the team, Sarah has assisted on a wide variety of disputes, including breach of warranty, product liability, debt recovery and breach of contract. Sarah acts for a diverse client base, from individuals to PLCs.

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