According to Financial Ombudsman Chief Tony Boorman, PPI claims have dropped significantly from over 266,000 in the first half of 2013, to 190,000 in the second half, but it is still “depressingly high.” Boorman, along with FSCS Chief Executive Mark Neale, consider PPI to have not yet reached its peak.
Boorman said that “We’re still a long way from being able to say that PPI is sorted once and for all. Over 1,000 people every day are still asking us to sort out PPI problems that they’ve not been able to resolve directly with their bank.”
According to the FOS, RBS, Lloyds Banking Group, Barclays, HSBC and MBNA accounted for 70% of the PPI complaints the organization receives daily. The five financial institutions also make up the largest chunk in the current £25 billion PPI recompense package for the United Kingdom.
FSCS Mark Neale said that they project an increase of 20% in the number of complaints the Financial Services Compensation Scheme will handle this year. The FSCS also handles complaints regarding financial products and services.
Neale said that the peak of PPI will still go on in a few years, but not in 2014 or 2015. The FSCS research cannot tell when, but the number of complaints is still fluctuating and has not yet plateaued at this point.