Daniella Lipszyc says loopholes in law can tie the legal profession in knots
Legal professionals have always looked for new sectors to expand their business. More than 10 years ago solicitors looked to personal injury to increase revenue streams, now it seems the focus has shifted to financial irregularity (FI).
Upward rise in FI
In the past 12 months there has been a marked increase in the number of FI cases being pursued in courts across the country. The Financial Ombudsman Service’s (FOS) annual report shows a dramatic rise in the number of payment protection insurance (PPI) claims that have been successfully resolved. Complaints about PPI nearly tripled in 2008/09, with 89% of claims resolved in favour of the consumer.
This trend is set to continue, with the FOS predicting a rise in all areas of FI claims. The FOS anticipates that in the next financial year it will process 150,000 new cases. It estimates that 16,000 will relate to credit card agreements; 18,000 will concern current accounts and 25,000 on PPI.
Having dipped
