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PFCA 5 year analysis of FOS PPI data

FOS update shows PPI complaints are not reducing!

The Financial Ombudsman Service [FOS] have released up to date Payment Protection Insurance [PPI] uphold statistics to the period ending June 2016.

The figures show that more PPI cases were referred to FOS in the first half of 2016 compared with the previous 6-month period. PPI complaints are not reducing! As FOS say “we have been receiving over 3,000 cases a week for six years running – despite wider expectations that numbers would fall”.

Banks still reject legitimate claims

Additionally, PPI complaints still make up over half of the complaints made to FOS showing that some banks are still rejecting legitimate claims thereby not treating their customers fairly and putting them through the delays in the FOS process. Let’s not forget and let’s be clear – a complaint can only hit FOS once it has been through a product provider’s internal process and rejected by that provider, or the provider has failed to comply with complaint handling timescale rules.

5 year PFCA analysis of FOS PPI data

The PFCA analysis of the FOS data shows that some of the major banks have made significant improvements. For example, Lloyds have moved from a position where 91% of its rejected cases were overturned in favour of the customer to a situation where ‘only’ 78% of its rejections are overturned by FOS. Other product providers have shown no real improvement. For example, 94% of NewDay’s rejections are overturned in favour of the customer; how many of these are store cards? Read more

The list shows some poor PPI performances:

Product provider

Percentage of rejections overturned by FOS in favour of the customer

Shop Direct Finance Company Limited


NewDay Limited


Secure Trust Bank plc


American Express Insurance Services Europe Limited


Clydesdale Bank plc


Aviva Insurance Limited


Creation Consumer Finance Limited


J D Williams & Company Limited


Black Horse Limited


So what does the FOS update tell us?

  • 1. Some major providers have made significant improvements, but as the PFCA analysis shows they have made similar improvements in the past only to slip back into old ways.
  • 2. PPI is not a resolved issue – and, therefore, consumers will lose out if a deadline for claims is forced on them
  • 3. Some product providers are still rejecting too many legitimate claims.

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