By Max Clarke
The scale of the Payment Protection Insurance fiasco has been quantified in the latest quarterly review from the Financial Ombudsman Service (FOS).
Over the past quarter, the watchdog received a total of 81,000 complaints from consumers anxious they had been miss-sold payment protection insurance on loans without their fully understanding or requesting the service.
Barclays bank alone have set aside a £1bn pool to address PPI compensation after the judicial review found banks at fault and consumers entitled to compensation.
Furthermore, the FOS principal Ombudsman, Tony Boorman, predicts complaints and compensation cases may continue to rise:
“Banks and others are already reporting record numbers of new complaints and it will be some time before we see the impact of those on our figures. So it’s difficult to tell whether we will be seeing still higher numbers yet — or whether the figures will now start to decline.”
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