Financial Services Compensation Scheme Chief Director Mark Neale said PPI claims are likely to continue in the next few years. The FSCS, which currently handles tens of thousands of PPI complaints, is likely to increase its handle of complaints by 20% this year.
Neale said that the UK have not yet seen the peak of PPI claims as more people continue to claim PPI refunds from banks and lending companies. He also said that despite the £20 billion set aside for PPI and the £13.3 billion pay-out to consumers, more consumers have not yet made their PPI complaints.
He added that he cannot ensure the height of the PPI peak is, or the length of time before PPI dies down. Despite the Financial Ombudsman announcing a decrease in the numbers of PPI complaints this year, the numbers in the FSCS have yet to drop.
The FSCS helps consumers to get back refunds from insolvent and bankrupt companies.
Lloyds is currently the biggest contributor to mis sold PPI with £13 billion set aside for PPI complaints. The Lloyds banking group is currently looking to reduce the amount of bonuses of former CEO Eric Daniels and current CEO Antonio Horta-Osorio.