Financial complaints on the rise - Banking - News |

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Financial complaints on the rise

Financial complaints on the rise

Category: Banking

Updated: 14/12/2012
First Published: 06/09/2011

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 It is now over 6 months old so the content may be out of date.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 fall out from the payment protection insurance scandal continues as figures show a significant increase in the number of complaints being made by consumers.

The figures have been released by the Financial Ombudsman Service which deals with issues between individuals and financial companies.

Between 1 January and 30 June 2011 there were 149,925 new complaints made – 54% higher than the 97,237 made in the previous six months.

Unsurprisingly, the bulk of the complaints made concerned payment protection insurance.

In total, 98,632 complaints were made about payment protection insurance – more than the total number of complaints received by the Financial Ombudsman Service in the preceding six months.

Recent figures showed that £215 million was paid out to customers who were wrongly sold payment protection insurance in the first half of 2011.

The data published also shows that from 1 January to 30 June 2011, the ombudsman service upheld an average of 47% of complaints in favour of consumers, compared to 53% in the second half of 2010.

"These latest figures show a significant increase in the number of new PPI complaints referred to the ombudsman during the first half of 2011," said Natalie Ceeney, chief executive and chief ombudsman.

"This period coincided with the time when most of the high street banks and some other financial businesses had put PPI complaints on hold, because of their legal challenge against the ombudsman service and FSA.

"As a result, complaints in this period about PPI were harder fought, and harder to resolve - particularly if we found in favour of a consumer. This data therefore gives only a partial view on the cases which we were working to resolve over this period."

Find the best bank account for you - compare bank accounts

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 Any products featured may be withdrawn by their provider or changed at any time.