PPI fiasco dominates complaints data

2 August 2011

Payment protection insurance (PPI) complaints make up the overwhelming majority of complaints to the Financial Ombudsman (FOS).

Releasing its quarterly data for the April-June period, 69% of complaints received were to do with PPI - an average of 900 per day.

Tony Boorman, principal ombudsman and decisions director at the FOS, says the figures come as no surprise: "The period also saw both the High Court decision on the PPI judicial review and the decision by the British Bankers' Association not to appeal that decision."

During the period, the high number of cases hampered the FOS workload, he says, resulting in it being unable to resolve as many complaints as hoped.

The rate of new PPI cases has since lessened but Boorman doesn't expect the level to change dramatically any time soon: "Banks and others are already reporting record numbers of new complaints and it will be some time before we see the impact of those on our figures.

"So it's difficult to tell whether we will be seeing still higher numbers yet - or whether the figures will now start to decline," he says. 

Boorman also reveals that the next FOS complaints report will separate PPI data by individual businesses.

Other findings

Credit card accounts made up the next highest number of complaints, accounting for 7% of the total. This is a slight increase compared to previous figures.

The report also revealed a decline in current account complaints and an increase in mortgage-related complaints.

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