Sharp drop in PPI complaints

18 October 2011

The number of payment protection insurance (PPI) complaints has dropped sharply in the last quarter, according to data from the Financial Ombudsman Service (FOS).

Latest data shows there have been 19,259 PPI cases from July to September this year compared to 56,025 recorded in the previous quarter – a drop of 66%.

The FOS says this dramatic fall in complaints is "as expected".

Complaints resolved

"The record highs of the previous April-June quarter tie in with when the judicial review was under way. Because consumers were having no luck complaining to their banks they would go to the FOS, during this time," an FOS spokesperson explains.

How to reclaim your PPI premiums

"But after the review ruling, banks started to reveal how they would resolve PPI complaints themselves so fewer consumers needed to go via the FOS."

However, despite the huge reduction in complaints, PPI is still the most complained about financial product "by some distance", accounting for 38% of all complaints the FOS received during this time. 

However, the FOS has upheld 92% of the PPI complaints in the consumer's favour.

Credit card accounts were the second most complained about area, with 5,751 cases reported to the FOS.


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