Ombudsman reveals dominating PPI complaints figures
The Financial Ombudsman Service (FOS) has revealed that Payment Protection Insurance (PPI) complaints continue to dominate overall complaints numbers. Hundreds of thousands of people have been missold PPI over the past decade, and with many cases not being satisfactorily settled with banks, complaints continue to be passed to the FOS for adjudication.
During the quarter between April and June, the FOS revealed that 56 per cent of new complaints related to missold PPI. Behind this leading figure were complaints against credit card accounts and current accounts, though these only accounted for six per cent of the complaint numbers noted. However, complaints numbers were lower than earlier periods, with the previous quarter’s 76,522 complaints falling to 57,790. Numbers were also significantly lower than those for the same period in 2011, when 80,711 complaints were seen.
Many people continue to make claims for missold PPI, but part of the drop in complaints could be contributed to banking groups being more flexible in offering compensation. After the Financial Services Authority (FSA) told banks to write to customers and explain about PPI and the misselling scandal, many people may have found it easier to make claims for their compensation entitlement. However, for those who can’t reach an agreement, news that over half of complaints put to the FOS were in the customers favour, will be welcomed by consumers wanting to ensure that they get the full entitlement that they’re due.