The increased workload from the mis-selling of Payment Protection Insurance (PPI) has left the Financial Ombudsman Service (FOS) with "a significant challenge", the body has admitted.
According to the Ombudsman's annual report, claims management companies (CMCs) share most of the blame for fraudulent complaints. "During the year we have again seen some claims-management companies taking a disappointingly lax approach to completing the questionnaire on behalf of consumers," it read. "We have also continued to see a significant number of cases where, after investigation, it emerged that no PPI policy had ever been in place. "We have made our position on this very clear to the claims-management companies in question - and we have required a number of them to withdr...
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