The FOS has predicted that the amount of PPI claims this year will be more than double what they anticipated.
There has already been nearly 100,000 cases submitted to the FOS in 2012, making it a record year with another quarter still to come.
The FOS only deals with the claims that are initially rejected by lenders, these are cases where the claimant has been un-successful in their first complaint to their lender.
In more than 70% of the cases that the FOS is receiving they find in favour of the claimant. This makes you wonder why the banks are rejecting so many valid claims.
Claims management companies submit more claims than individuals and they believe that the problem resides in banks being un-supportive.
On the other hand statements by banks state that they believe the issues resides with the claims companies themselves. Reports from lenders and the FOS has outlined the number of illegitimate claims made by CMC’s is rising fast.
Though this is to be suspected if the net volume of claims rises, there will be more people chancing their hand. Many people may feel that it is worth a punt, with the average claim at around £3000 many are trying to find a way.
Around £10bn has already been put aside by lenders in the UK to cover the cost of paying all the PPI complaints they expected to receive. Which? have warned that they believe this is nowhere near enough and that banks have grossly underestimated the size of the market.
PPI was mis-sold by lenders across the UK in droves in the last decade, it was largely sold to people who didn’t want, need or ask for the controversial policy and these people can now claim back compensation.
Compensation totals the amount of premiums paid, plus all the interest accumulated on those totals and an additional 8% year on year compounded interest.
If you have a credit card, loan or a mortgage it is time to start checking those statements and policy documents to see if you have been paying for the policy without knowing or being eligible for it.