FOS prepares for caseload surge
by Gill Montia
Story link: FOS prepares for caseload surge
The Financial Ombudsman Service (FOS) is preparing for another rise in its caseload, having estimated a 7% increase for the year to March 2011.
In the current financial year, Payment Protection Insurance (PPI) disputes have risen 40%, while the number of cases involving motor and general insurance is broadly similar to previous years, and the number of cases relating to investments has continued to decline.
However, the FOS notes: “Disappointingly, we are still seeing insurers who fail to understand that, if they choose to repair vehicles, they are responsible for the quality of those repairs – and for the consequences of poor-quality work.”
Regarding PPI disputes, some cases are currently on hold following the decision by the British Bankers Association to issue judicial review proceedings in relation to both the Financial Services Authority’s PPI complaints-handling guidance, and the FOS with regard to information on its website.
However, once the outcome of the proceedings is known, the Ombudsman expects a rise in the number of PPI cases being referred “with some financial businesses being less cooperative in progressing those cases”.
The current rate at which the watchdog is resolving cases is equivalent to 180,000 in a full year, compared with a forecast of 210,000 for 2010/11.
The discrepancy reflects a larger proportion of harder-fought cases; an increase in the complexity of cases, and the fact that fewer cases are capable of being resolved quickly by informal settlements.