PPI (payment protection insurance) and packaged accounts are complained about than any other financial product, according to the latest data published by the Financial Ombudsman Service.
Between April and June, 43,569 people brought new PPI gripes to the Ombudsman, accounting for 53% of all new cases received over the time period. For closed cases, 57% of PPI complaints were upheld in the consumer’s favour. This represents a significant fall compared to the previous year, where two-thirds of complaints were upheld.
A further 7,319 people brought packaged account complaints to the Ombudsman between April and June, representing 7% of all new cases. Almost a quarter of these complaints were upheld, nearly double the 14% that were upheld during 2015/16.
Payday loans complaints meanwhile are snowballing, according to the latest figures. In 2015/16, the Ombudsman opened 3,168 new cases regarding short-term loans, but 2,729 were opened in the three months to June alone. If these complaints stay at current levels, 244% more cases will be opened in 2016/17, compared to the previous year.
However, more self-invested personal pension (SIPP) complaints were upheld than any other product (66%), significantly higher than the 57% of upheld complaints in the previous year.
However, new cases for this financial product only totalled 328, accounting for less than 1% of new cases.
Overall complaints figures down
Overall, 81,709 new cases were brought to the Financial Ombudsman Service between April and June. If complaints continue at this rate, the Ombudsman will open 3.7% fewer cases this year.
Less than half of settled complaints were upheld in favour of the consumer during the first quarter of this year, despite the Ombudsman upholding the majority of complaints in both 2015/16 and 2014/15.
If you’ve got a gripe with a financial services provider, complain to the company in the first instance. If you don’t get a response within eight weeks or you’re not happy with the response you do get, take it to the free Financial Ombudsman Service to look into.