View the article online at http://citywire.co.uk/money/article/a590862
PPI becomes most complained about product ever
Complaints figures from the Financial Ombudsman Service show payment protection insurance accounted for 60% of its workload in the past year.
The number of complaints made to the Financial Ombudsman Service (FOS) rose sharply to 1.2 million over the past year as consumers continued to claim money back for mis-sold payment protection insurance (PPI).
In the 12 months to 31 March 2012, some 1,268,798 complaints were made, and one in five, 264,375, of those complaints were escalated to disputes. The number of complaints that were escalated has also risen by 28% since last year.
Investment-related complaints fell 4% and banking complaints fell 1%, but insurance complaints, excluding PPI, rose 31%.
Some 64% of customers with complaints received compensation.
FOS chairman Nicholas Montagu said the work of the FOS had been ‘dominated’ by the mis-selling of PPI following a High Court ruling last April that forced the banks to pay out over PPI mis-selling.
‘These complaints – which rose sharply in volume after the judicial review brought by the banks found in our favour in April 2011 – accounted for 60% of our total annual workload. The judicial review resulted in the banks accepting our approach to deciding PPI cases and the Financial Services Authority’s guidance on case handling.
‘At the same time, media coverage made large numbers of consumers aware for the first time that they might have been mis-sold PPI policies. We received over 150,000 of these cases during the year – the highest number we have ever received in a year about a single financial product… We are still receiving PPI complaints at the rate of over 1,000 new cases every day.’
Consumer group Which? said the FOS figures were proof that financial institutions were still not treating customers fairly.
'The record increase in the number of new complaints going to the financial ombudsman shows that too many financial institutions are still failing to treat customers fairly when things go wrong. The fact that over 250,000 people took their problem to the ombudsman this year is further evidence that banks and insurers must transform the way they handle complaints,' said Which? executive director Richard Lloyd.
News sponsored by:
After Boris announced he was backing Brexit, sterling suffered its biggest slump in six years. Our Market Mavens discuss. Follow the Market Mavens LinkedIn page for weekly videos, in which our panel of industry experts share their views on financial news
More about this:
More from us
- Lloyds ups PPI bill and warns of 'long and difficult' recovery
- Barclays’ profits hit by extra £300 million PPI bill
- PPI victims: avoid 'unscrupulous' claims management companies
- PPI scandal continues to fuel bank complaints
- Not sure if you've been mis-sold PPI? Watch out for your letter
- Chart of The Day: PPI victims paid £2 billion but owed billions more
- Santander UK profits down over 40% after PPI scandal
- PPI victims have received over £1 billion in compensation
Tools from Citywire Money
From the ForumsForums are temporarily down for maintenance.
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.
by Gavin Lumsden on Jul 22, 2016 at 16:24