PPI scandal, the biggest ever scandal to hit the UK financial sector basically arose from the fact that the PPI policies were mis-sold. The financial institutions and banks which provided the PPI did not give out the accurate and complete information about the policy to the customers. The misleading information only increased the number of complaints that the customers had against PPI as, following the recession, 85% of people who tried to make use of the policy were declined as they were ineligible to make a claim.
The number of people claiming back PPI increased ever since the Bankers’ Association decided not to appeal against the High Court ruling against the mis-selling of the PPI. However, the latest figures released show that the number of claims that the banks and financial institutions are getting has reduced. The FSA was scrapped on April 1, 2013 and in its place the FCA or Financial Conduct Authority now handles all complaints against the PPI. The FCA also releases figures on the complaints that are received by specific bodies in the financial sector.
As per the figures released by the FCA, there has been a slight decline in the number of PPI mis-selling scandal in the second half of the year 2012. During the second half, there were a total of 2.1 million complaints that were received as compared to 2.2 million complaints that were received during the first half of the same year.
The figures, however, also revealed the fact that the number of complaints received regarding PPI was the largest in the sector. An estimated 63 % of all complaints received were against payment insurance. A number of institutions have also been fined for failing to meet the PPI claims. In addition, banks are now pushing for a deadline to be applied to the PPI claims.
Thus, it seems that the worst is over and that the PPI scandal is past its peak.