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PPI complainants given more time

PPI complainants given more time

Category: Credit cards

Updated: 28/05/2010
First Published: 28/05/2010

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 It is now over 6 months old so the content may be out of date.
Borrowers who recently made a complaint about their purchase of a payment protection insurance (PPI) policy have been given more time to refer their grievance to the Financial Ombudsman Service.

PPI is designed to make sure that borrowers can still pay off loans, including those on credit cards, should they become ill or lose their job.

However, much concern has been voiced over the way in which the policies are sold to consumers.

The Financial Services Authority said the temporary rule, which suspends the existing six month time limit for referring complaints to the ombudsman, will come into effect immediately and run for five months, until 27 October 2010.

The rule only applies to people who were sent a final response by the firm against which they made the complaint between the dates of 28 November 2009 and 28 April 2010 inclusive.

The move has been made to ensure recent PPI complainants are not disadvantaged by running out of time to refer their complaint to the ombudsman.

The regulator is currently trying to find a long term solution to ensure customers are treated consistently and fairly when complaining about the sale of a PPI policy, or when buying a new one.

Recent figures from the ombudsman revealed that PPI was the most complained about financial product of last year.

PPI topped the offenders list after accounting for three in every ten complaints that the ombudsman received during the 2009/10 tax year, an increase of 58% on the previous year.

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