According to Which? Director of Policy and Campaigns Alex Neill, UK’s financial institutions are to blame for the increasing number of PPI complaints heading to the ombudsman.
The director stressed the current systems and regulations imposed by regulators still have yet to work.
“Too many people have been driven to use claims management companies that are taking a large proportion of the compensation they are owed.
“Banks and other providers must make the process simpler and easier for customers to claim directly, or pick up the tab when consumers use claims management companies to get back the money they are owed.”
Which? had stressed that banks had laid down the responsibility of simplifying claims to CMCs. The group said banks have grown extremely irresponsible even to simplify the PPI claims process as the PPI deadline approaches.
The statement comes after official figures from the Financial Ombudsman Authority indicate the scandal still has about 4,000 PPI claims weekly. It also said the FOS received a total of 340,899 complaints in the previous financial year.
According to Chief Ombudsman Caroline Wayman:
“It would once again be a year of big numbers and big changes for everyone.
“But we mustn’t lose sight of the lives and livelihoods behind every complaint we resolve.
“That’s why preventing mistakes of the past from happening again will help restore trust and fairness in financial services.”