Banks pass buck to FOS over thousands of PPI claims

Laura Miller
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Banks are forcing victims of payment protection insurance (PPI) mis-selling to take their claim to the Financial Ombudsman Service (FOS), when they could resolve the disputes immediately.

The FOS says the vast majority of the more than 1,000 PPI complaints a week it deals with should never make it to the Ombudsman. Instead they should be resolved by the banks, which represent 70% of PPI cases, following the initial consumer complaint. About 90% of the cases passed up to the Ombudsman service are upheld. But only 16% of people whose PPI complaint is rejected by a bank take their case to the Ombudsman, suggesting banks' failure to deal with PPI complaints is denying refunds to hundreds of thousands of customers. Consumers who complain to the Ombudsman receive an av...

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