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PPI complaints still soaring

PPI complaints still soaring

Category: Banking

Updated: 19/07/2013
First Published: 17/07/2013

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 It is now over 6 months old so the content may be out of date.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 Financial Ombudsman Service (FOS) is still receiving more than 2,000 consumer complaints a day regarding miss-sold Payment Protection Insurance (PPI).

Recent figures published by the FOS reveal that 83% of the complaints it received between April and June 2013 were regarding PPI, amounting to a total of 132,152 complaints and up from 56% during the same period last year.

Of these PPI cases, the FOS said 78% were upheld in favour of the consumer.

The miss-selling of PPI has become the biggest scandal to ever hit the banking sector. Millions of individuals have sought redress over the past two years as a result of being sold repayment cover when taking out loans, credit cards and mortgages, often when they did not require it.

Elsewhere amongst the figures, it was revealed that the FOS received 736 new complaints about packaged bank accounts in the second quarter of this year, compared with 1,629 complaints during the whole of last year.

Packaged bank accounts recently came under fire as many customers sold these accounts aren't eligible for the cover provider by the provider, such as travel or mobile phone insurance.

However, in many cases, packaged accounts can save consumers' money, if they use and are eligible for the benefits provided under the product.

Additionally, recent regulation that came into force earlier this year means that banks and building societies are now legally required to ensure that customers who take out a packaged bank account can use the benefits that come with the account.

What Next?

How to independently claim back mis-sold PPI
Is a current account with benefits for you?

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 Any products featured may be withdrawn by their provider or changed at any time.

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