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PPI complaints drop as deadline looms

Cherry Reynard
Written By:
Cherry Reynard

FCA data showed a 5% drop in complaints against financial services firms in the second half of 2018, largely as a result of falling PPI claims.

Complaints dropped from 4.13m to 3.91m, the first fall since firms were required to change the way they report complaints in 2016.  The cut-off date for PPI claims is the 29th August of this year, so any who think they may have outstanding claims need to act quickly.

3,181 firms reported receiving one or more complaints during the last six months of 2018, but 231 of these firms reported 500 or more and these firms accounted for almost 98% of all complaints reported.

Payment protection insurance (PPI) attracted 40% of all complaints, but there was a significant drop from 1.72m in the first half of 2018 to 1.58m in the second half of 2018. There was a change in reporting, which allowed firms to exclude from their complaints return any PPI complaints where it was established that the complainant had not purchased a PPI policy from the firm.

Other types of complaint decreased from 2.41m to 2.33m over 2018. Current accounts complaints dropped by 13% over the period, while credit cards complaints jumped 10%.

Companies are also resolving complaints quicker. The proportion of complaints closed by firms within three days rose to 37% compared to 35% the first half of 2018; 95% were closed within eight weeks.

Christopher Woolard, executive director of strategy and competition said: “It is encouraging to see that complaint figures have dropped and firms are dealing with complaints more quickly. We expect firms to continue to focus on ensuring their customers are well served and that they respond quickly where consumers complain.”