The number of complaints about payment protection insurance (PPI) has reached ‘unprecedented levels’ with about 2,000 cases being referred to the Financial Ombudsman Service (FOS) on a daily basis.
The FOS received 211,885 new PPI complaints in the second half of 2012 which made up three quarters of the total number of complaints that landed at its door during the six month period.
You can find out if you’ve been mis-sold PPI using our checklist.
Banks must do more to help people get their money back
PPI, or loan protection, was sold to cover loan repayments if the person became ill, had an accident or lost their job. However, the PPI policies were mis-sold to those who did not want or need them, or would have been unable to make a claim if they unable to work.
Responding to the latest figures, Which? executive director Richard Lloyd said: ‘It’s shocking that the number of PPI complaints to the financial ombudsman has more than doubled in six months, now reaching record levels. Some banks are clearly not making it as straightforward as they should for people to get the money back they’re legitimately owed.
‘Banks must deal with complaints quickly and fairly and help consumers claim the compensation they are due without hassle. They should be proactively contacting past PPI customers so people are aware they can claim without using unnecessary and expensive claims management companies. And the Financial Services Authority should take action against any bank dragging its feet in settling complaints.’
PPI – how to claim compensation
If you think you have been mis-sold payment protection insurance use our PPI reclaim tool.
The FOS said that, across all individual businesses, the uphold rate for PPI complaints ranged from finding in the consumer’s favour 97% of the time to as low as 6%.
We previously reported how the total amount of money set aside by the big banks for dealing with PPI complaints and compensation has now reached £13.6bn. However, our estimates show that if PPI pay-outs continue at the same pace all of that money will be gone by the end of this year.