Payment Protection Insurance complaints soarWhich? concerned by a worrying rise in PPI complaints
30 March 2016
Payment Protection Insurance (PPI) remains the most complained about financial product, with complaints rising by 6% in the last six months of 2015.
Almost half of the 2.11 million new complaints received by financial services firms between July and December 2015 were related to PPI.
But the new complaints data from the Financial Conduct Authority (FCA) also found there was a decrease overall of 1.4% in the number of complaints compared to the previous six month.
The reduction was mainly driven by a 10% drop in complaints about current accounts and a 15% drop in complaints about savings accounts.
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A worrying rise in PPI complaints
Which? executive director Richard Lloyd said: ‘This is a worrying rise in PPI complaints. Banks have got to up their game and ensure their customers' claims are dealt with quickly, simply and fairly.
‘There is still a huge amount for the FCA and banks to do before anyone can draw a line under this mass mis-selling scandal.'
On publication of its complaints report, the FCA announced it was pleased with the overall fall in complaints but recognised there is still more to do.
Director of strategy and competition at the FCA Christopher Woolard said: ‘It is positive to see that the longer-term reduction in the volume of complaints has continued into the latest period.
‘However, firms still need to do all they can to reduce complaints and ensure that they are working in the best interests of consumers.’
Five most common financial complaints
The top five most complained about products and services between July and December 2015 were:
- Payment protection insurance – 932,298 complaints (up 6% compared with the previous six months)
- Current accounts – 454,276 complaints (down 10% compared with the previous six months)
- Other general insurance – 296,505 complaints (down 3% compared with the previous six months)
- Credit cards –132,988 complaints (up 9% compared with the previous six months)
- Savings, including cash Isas, and other banking – 67,546 complaints (down 15% compared with the previous six months)
The total redress paid to consumers fell to £1.97 billion between July and December 2015, which is slightly lower than the £1.98 billion paid between January and June 2015.