PPI tops financial complaints table again

Tom Wilson
3 November 2016
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About 43,000 complaints were made about payment protection insurance (PPI) policies between July and September 2016, accounting for more disputes than every other financial product combined according to the latest complaints figures from the Financial Ombudsman Service (FOS).

The number of new PPI cases being taken to the Ombudsman fell by 3% compared to the previous quarter, though banks continue to pay out millions of pounds worth of redress.

The FOS upheld 57% of PPI complaints in consumers’ favour during the third quarter of the year, which was also the highest of any financial product.

 

Packaged accounts remain the second-most complained about products with over 5,300 new cases taken to the Ombudsman, though the number of new cases fell by 27% compared to the previous three months, and the uphold rate – where the Ombudsman rules in the consumer’s favour – was low at just 16%.  

See the table below for the details of the five most complained about products. 

Payday loan complaints on the up

Payday loan complaints fell slightly on a quarterly basis, though the number of people taking cases to the Ombudsman remains far higher than last year. In the past six months around 5,400 people made new complaints about payday lenders, while only 3,200 did so in the whole of the 2015/16 tax year.

Payday loans and income drawdown products also had the joint second highest level of upheld complaints at 53%, though many more people made successful appeals against payday lenders, with almost three thousand new cases. Drawdown complaints were relatively few, with just 38 new cases opened between July and September.

 

Tashema Jackson, money expert at uSwitch.com, says: “The sharp rise in the number of payday loan complaints shows that payday lenders continue to fall short when it comes to responsible lending and treating their customers fairly.

“Despite the stringent regulatory controls put in place by the FCA, many short-term lenders are still giving their customers cause for complaint.

“However, it is encouraging to see that more people are now aware of their right to complain to the ombudsman, should they feel they are being treated unfairly by a payday lender.” 

Product

Total new complaints July - September

Uphold rate July - September

Payment protection insurance

42,907

57%

Packaged bank accounts

5,317

16%

Current accounts

4,030

28%

Car and motorcycle insurance

2,858

28%

Payday loans

2,692

53%

 

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