65% of complaints to Ombudsman about PPI
Some 88,000 new complaints about financial companies flooded into the Financial Ombudsman Service (FOS) during July, August and September.
The vast majority (57,094) were about payment protection insurance (PPI), accounting for 65% of all complaints, while packaged bank accounts were the next most complained about product (7,115 complaints).
During the three-month period, 49% of PPI complaints were upheld in the consumers' favour, while 42% of packaged account complaints were also upheld.
The next most complained about product was car and motorcycle insurance (1,958 new cases, 35% of which were upheld), followed by mortgages (3,333 new cases, 33% upheld) and credit cards (2,026 new cases, 33% upheld). The financial product with the most upheld complaints was card protection insurance (446 new cases, 88% upheld).
While it still dominates the Ombudsman's workload, the number of complaints about PPI dropped by 50% year on year. For the same period last year, there was 143,177 complaints about the widely mis-sold product.
The figures were revealed in the FOS's latest report, which was published today.
Payment protection insurance is designed to cover you should you fall ill, have an accident or lose your job and can’t make repayments on loans or credit cards. However, research by consumer watchdogs found the cover to be overpriced, filled with exclusions (policies exclude self-employment, contract employees and pre-existing medical conditions) and were often mis-sold because the exclusions were never fully explained. In May 2011, the High Court ruled banks had knowingly mis-sold PPI and ordered them to compensate around two million consumers.
If you’ve have a complaint about a financial service product you have bought but the company you bought it from refuses to resolve your problem after eight weeks, the Ombudsman can help. The Ombudsman will investigate and resolve the matter. The Ombudsman is independent and its service is free to consumers. The Ombudsman may find in the company’s favour but consumers don’t have accept its decision and are always free to go to court instead. But if they do accept an Ombudsman’s decision, it is binding both on them and on the business.