Friday, January 30, 2015
FOS cases fall as PPI scandal subsides
The Financial Ombudsman Service (FOS) received 246, 404 new cases between April and December 2014 - a drop of 39.5% year-on-year.
The majority of the drop came from a fall in PPI enquiries, which previously accounted for over half of all enquires. According to a FOS spokesperson, the service was seeing 12,000 new cases a week at the height of the PPI scandal, however that number has now fallen to approximately 4,000 cases a week.
The Ombudsman was required to give a ruling on 32,402 cases, and upheld the consumer complaint in just over half (53%) of these instance.
Despite these drops, the number of FOS rulings for the full financial year is likely to remain flat. For the twelve month period to April 2014 (its 2013/2014 year), the FOS made 38,397 rulings. In comparison, it has already made 32,402 in the first three quarters of its 2014/2015 year.
In total, the FOS received 455,058 general enquiries between April and December 2014.
By sector
While motor finance is covered by the FOS, its statistics are dispersed among a number of other sectors, including hire purchase and hiring/leasing/renting.
Between April 2014 and December 2014, there were 3,454 hire purchase related enquiries, of which 1,271 became cases. Eventually the FOS provided a ruling on 291 cases, and upheld 39% of the complaints. These figures include hire purchases which were not motor finance related, however.
In the same period, there were 621 enquiries related to hiring/leasing/renting, of which 223 became cases and 47 required a ruling. In these cases, 33% of customer complaints were upheld.
DATED: 30.01.15
FEED: MF
