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FOS calls for action over selling of PPI

Ombudsman receives more than 500 complaints a week

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1 in 4 people have a credit card they haven’t used in the last year

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.

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