400,000 unresolved PPI cases still with the watchdog

The Financial Ombudsman Service (FOS) has a "stock" over 400,000 unresolved payment protection insurance complaints, which it says will take some time to resolve.

Of these unresolved cases, around 60,000 will be more than 18 months old by the end of this financial year.

The ombudsman said that PPI cases take longer to resolve than other disputes because it is often difficult to reach agreement between the two parties – the claimant and the financial services company.

However, the amount of cases being resolved within six months has fallen from last year. Just under 70% of PPI complaints were resolved within six months during the 2013/14 financial year to date, down from 73% in the 2012/2013 financial year.

The trend is the same with cases being resolved within three months, with 40% successfully dealt with in compared to 43% 12 months previous.

The FOS also reported the amount of cases resolved within 12 months has increased as well, with 91% of cases within a year sorted out, compared to 89% in 2012/13.

Overall, in the 2013/14 year to date, the number of resolved PPI complaints has risen compared to the 2012/13 financial year when 101,000 cases were resolved. By the end of the 2013/14 financial year, the ombudsman expects the figure to be around 310,00.

Tony Boorman, interim chief executive and chief ombudsman, said: "For the last few years our focus has been on building up our capacity to meet the unprecedented challenges of PPI.

"While we expect the volumes of PPI complaints to decline, the numbers are still likely to be substantial. Our plans take this into account – but we will still be relying heavily on the patience of consumers and the cooperation of businesses, before we will be able to draw a line under the PPI saga."

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