Up to 5,000 PPI Complaints Made Each Week
According to new figures, there are up to 5,000 people still complaining to the Financial Ombudsman each week about PPI.
Two-thirds, or 67% of new complaints received by the Financial Ombudsman Service (FOS) between May and June were all about payment protection insurance. According to the Ombudsman service, last year they were dealing with 12,000 each week about PPI although the amount of issues that they were dealing with at the FOS s still 50% higher than in 2012.
Most Complained About
PPI is the most complained about product that the FOS, who deals with and resolves disputes between consumer and financial firms, has ever seen.
The mis-selling of PPI can be traced as far back as the 1990s and in some rare cases, the 1980s but there’s still been millions of people that have been mis-sold the insurance after it was added to their loans and credit card agreements without them fully understanding what it was and in some instance, not even knowing it was there.
The aim of this insurance was to help people to repay their debts if they were to become ill or lose their job. In the long run though, the vast majority of these policies were unsuitable for the people who took them out.
During April, May and June, there was some 56,869 complaints made about PPI according to the FOS. 70% of the rejections from the banks that get to the FOs are upheld and the average pay-out for the consumer is £2,500.
According to the Financial Conduct Authority’s website, there has been just over £15 billion paid out over PPI since January 2011.