PPI is the most complained about financial product

27 March 2018
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New figures from the Financial Ombudsman Service (FoS) reveal that mis-sold Payment Protection Insurance (PPI) was the most complained about product in the six months to 31 December 2017.  

Some 92,231 new claims were made about PPI in the second half of 2017 –11% more than the previous six months.

The flurry of complaints followed an advertising campaign by the City regulator featuring a likeness of Hollywood star, Arnold Schwarzenegger, which urged consumers not to miss the August 2019 deadline for PPI claims to be made.

Bank of Scotland was the most complained about business over the period with a hefty 20,386 complaints lodged against it in the final six months of the year. More than 17,000 of these complaints related to PPI. Some 97% of PPI claims made against American Express were upheld and 96% of those made by Aviva Insurance customers.

The FoS reports that, on average, more than a third (37%) of PPI cases were resolved in favour of the consumer – the highest proportion of any claim type.

Major banks made up much of the rest of the top 10 most complained about firms, with Lloyds, Barclays, HSBC, Santander, Nationwide and NatWest all receiving complaints.

With 4,710 claims, Barclays had the greatest number of complaints relating to banking and credit, while Bank of Scotland had the highest number of mortgage and home finance claims, at 559.

In total, 219 businesses had claims made against them over the period – 11% fewer than in the first half of the year – with a total of 165,406 new complaints registered.

The FoS reports that consumer credit complaints were on the rise too – up 11% from the first half of the year at 16,328. It expects to receive around 220,000 complaints in the coming financial year.

An FoS spokesperson says: "We've seen 3,000 more new PPI cases than we did in the the first half of 2017 as consumers are getting in touch ahead of the deadline next year.

"We've done a lot of work to help companies improve their own complaint-handling process for PPI to help them get it right first time. Now many of the new cases we see are more complicated, and that is reflected in a lower uphold rate."

 

 

 

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