PPI complaints flood in at 6k per week

28 January 2014

Complaints about payment protection insurance are still swamping the Financial Ombudsman Service, accounting for 74% of its workload.

The ombudsman received around 6,000 new PPI complaints each week throughout October, November and December 2013 – a time in which 107,267 complaints about financial businesses came in, and 79,578 about PPI specifically.

During the quarter, 48% of those PPI were upheld in the consumer's favour.

While current accounts were the next most complained about product, compared to PPI, the numbers received were smaller but still significant.

There were 3,568 during the three-month period and the Ombudsman found in the consumer's favour in a third of cases.

Similarly, 1,261 complaints were received about packaged accounts and a massive 80% were upheld in the consumer's favour.

And while payday loans often come under heavy criticism, the FOS only received 218 complaints about them in the last quarter of 2013 – although it did uphold 59% of them.

The Ombudsman also received insurance complaints caused by bad weather – which often involve broken boilers, burst pipes and structural damage to roofs, walls and fences.

In one case highlighted, it said it had found in the consumer's favour when the insurer had wrongly rejected a claim for storm damage on the grounds that the damage was caused by wear and tear of the old roof rather than a storm. It even disputed there had been a storm on the night in question – a claim the FOS was able to dispel.

"Many people's dealings with financial services are strained. And consumer trust in financial services is – at best – fragile," said Tony Boorman, chief executive and ombudsman at the FOS.

Add new comment