The latest figures from the Financial Ombudsman Service show a sharp fall in the number of payment protection insurance (PPI) complaints.
Fewer complaints in third quarter
The 19,259 new PPI complaints received by the Ombudsman in the third quarter of 2011 is 66% lower than in the second quarter. However, the number of cases being upheld in favour of the consumer increased to 92%.
The drop comes following the legal defeat of the banks in April which saw a surge in second quarter complaints as banks processed backlogged cases. However, despite the fall PPI mis-selling still takes up 38% of the Ombudsman’s case load and other types of complaints have increased.
Deposits and savings complaints were up 40%, mortgage complaints went up by 37%, overdrafts and loans were up 23% and motor insurance complaints increased by 22%.
The figures come following a recent Which? investigation into claims management companies reclaiming PPI on consumers’ behalf. If you are unsure whether you have PPI, take a look at the campaigns section of our website, which includes a step-by-step guide, template letters, and frequently asked question, or watch this video:
No need for claims management companies
Our undercover investigation of claims management companies (CMCs) found a range of problems, with most not following important rules set out by the regulator, the Ministry of Justice (MOJ). Posing as someone who thought they might have been mis-sold payment protection insurance (PPI), Which? mystery shopped 25 CMCs..
Two thirds of these companies failed to advise the caller about the Financial Ombudsman Service, and six repeatedly told the caller they had more chance of success or would receive more compensation using a CMC than by submitting a claim independently. We also found contract terms that were unfair. The typical fee charged by a CMC is 30% of the compensation received (25% cent plus VAT), but the definition of ‘compensation’ varies.
Since the launch of our free PPI tool in 2009, over 10,000 people have used it to submit a complaint to their provider over a mis-sold payment protection insurance policy.