The Financial Ombudsman Services (FOS) has called on the City watchdog to take action over the way Payment Protection Insurance is sold following a 10-fold rise in complaints.
FOS said it receives more complaints about PPI than any other issue, with more than 500 a week.
Significant proportion of complaints upheld
It said the ‘significant proportion’ of complaints that were being upheld made it think there was ‘widespread consumer detriment’, and as a result it has written to the Financial Services Authority (FSA) about the issue.
A spokesman for the Financial Ombudsman Service (FOS) said: ‘PPI complaints have risen 10-fold in the past two years, and are now 25% of all the complaints we get.’
Louise Hanson, head of campaigns at Which?, said: ‘This confirms what Which? already knew, that consumers have been mis-sold inappropriate and useless payment protection insurance in massive numbers. We want the FSA to take tough action against firms who have mis-sold these products and against firms who are not handling customer complaints properly.’
Claim a refund for PPI
Which? has advice on how to tell if you have been mis-sold PPI.