Complaints about payment protection insurance (PPI) continue to dominate a list of financial disputes despite sales rules being tightened.
Payment protection insurance complaints
Some 45% of the workload of the Financial Ombudsman Service in the three months to October was made up of PPI cases, new figures show.
PPI is supposed to cover borrowers’ loan repayments if they fall ill, die, or lose their jobs.
Next were complaints about current accounts (11%) and credit cards (10%).
Mortgages (4%), overdrafts and loans (3%), motor insurance (3%), and deposit and savings accounts (3%), followed on the list of most-complained about products to the Ombudsman.
PPI has become highly controversial after years of campaigning by consumer groups against the widespread mis-selling of the policies.
They accused banks and other lenders of foisting the insurance on millions of people, even if they could not make a claim under the terms of the policies, did not know what they were buying, or had been told improperly that buying the insurance was a requirement of being offered a loan in the first place.
Consequently, complaints have dominated the work of the Ombudsman for some time.
It prompted action from regulators, ending with confirmation in October that banks will no longer be able to sell PPI policies when granting loans to customers.
Lenders will have to wait seven days before offering PPI to their customers, although a date has yet to be set for implementation of the new rules.
In the meantime, the City watchdog – the Financial Services Authority – has taken action against more than 20 firms for mis-selling PPI and has already halted the sale of the policies alongside unsecured personal loans where a one-off upfront premium was involved.
Leicester PPI Claims News
PPI Claims Leicester – UK banks’ PPI claim bill could hit £5bn
The Financial Conduct Authority (FCA) released its latest totals on monthly PPI Claim Payouts. July 2013 totals for PPI repayments was £528 million which brings the total of PPI Claims repayments made sine January 2011 to £11.5 billion.
The figures are collected from 26 firms and financial institutions that made up for 96% of all the Payment Protection Insurance complaints from last year.
Midlands PPI, how the scandal spanned three decades
The payment protection insurance saga began in the Nineties. Now the story of the scandal reaches its final chapter at the High Court in London. Our timeline sets out how events unfolded.
Banks rejecting legitimate PPI Complaints
The recent increase in PPI complaints being recieved by the FOS is a direct results of Banks rejecting increasing numbers of legitimate PPI complaints being sent to them. The FOS has upheld 8 out of 10 PPI complaints forwarded to them.
This 80% of upheld complaints by the FOS highlights how the Banks are increasingly rejecting valid PPI complaints being made by customers.
PPI Complaints still rising for the Financial Ombudsman
A record 86% of all complaints made to the Financial Ombudsman service is about PPI mis-selling. In the first half of the year a reported 266,228 PPI complaints for mis-selling have been lodged.
Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
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