PPI accounts for half of all financial complaints

In the final three months of last year over 50 percent of the complaints that the Financial Ombudsman Service received was in regard to PPI, or payment protection insurance. It is expected that this year the number is going to increase even further and the ombudsman expect that the number of complaints is going to be about 60 percent from those complaining about PPI.

The FOS have described the amount of complaints they are getting is unprecedented and they expect the number of complaints they are going to be receiving only to increase in the future. Recent figures from the service have said that they have dealt with over 300,000 complaints about the mis-selling of PPI.

A recent statement from the service read, “We are expecting substantial volumes of complaints with regard to PPI for the next two years. The size of the market of PPI is enormous and the amount of detriment to consumers is significant. The number of cases being decided in the favour of the consumer with regard to PPI is very high with nearly 70 percent of all cases going in their favour.

This is lower than the previous quarter which was deciding over 90 percent of cases in the favour of the consumer, but before that the percentage was significantly lower. The cost of the service handling PPI cases is usually much higher than with other cases they handle. Therefore they are proposing that an extra fee of £350 be added to each case. This fee is only going to be added however for businesses who pursue more than 25 cases a year.

Credit card complaints are also often brought to the service but they are significantly lower than the number of PPI cases. Currently the number of credit card cases makes up seven percent of all complaints that the FOS deal with. Complaints about mortgages are around five percent and current-account complaints are around six percent.

There are many other financial products that are complained about and together these make up around 17 percent of all the complaints that the FOS handle. In the final quarter of 2011 the number of mortgage complaints actually decreased and so did the number that were being decided in favour of the customer.

In the last quarter of last year over 2,300 complaints about mortgages were received and this is fewer than the number that were received in the summer. In the last three months of the year less than a quarter of all mortgage complaint cases were decided in the consumer’s favour. This is significantly higher than the figures that were seen earlier in the year when one third of mortgage complaints were being decided in favour of the consumer.