Deluge of PPI complaints continues to grow - Banking - News - Moneyfacts

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Deluge of PPI complaints continues to grow

Deluge of PPI complaints continues to grow

Category: Banking

Updated: 11/09/2012
First Published: 11/09/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The number of payment protection insurance (PPI) complaints received during the first half of this year has soared by 27%, as more people demand refunds for miss-sold policies.

During the initial six months of this year, 85,562 new complaints regarding PPI miss-selling were received by the Financial Ombudsman Service (FOS), accounting for 63% of all complaints received by the ombudsman.

According to latest figures released by the FOS, 71% of PPI complaints were upheld in the customer's favour.

An increasing number of claims management companies (CMC)s have jumped on the PPI bandwagon, offering to claim back miss-sold insurance for consumers. Unfortunately some CMCs have been exposed as being bogus, misleading people into thinking they may be owed money despite them never being sold PPI.

It is thought the number of fake PPI claims increased by a staggering 247% during the first six months of this year.

The Government announced recently that it will be cracking-down on unscrupulous claims firms to combat the issue.

Millions of customers were sold PPI alongside loans, mortgages and credit cards to cover them in the event of being unable to make repayments. It has since been revealed that many institutions sold or automatically signed customers up for PPI regardless of whether it was required.

What next?

Need help raising your concerns or approaching the Financial Ombudsman Service why not check our our guide 'How to complain to a financial services provider'

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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