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Insurance

PPI complaints soar as ombudsman takes on 2,000 new cases a day

Joanna Faith
Written By:
Posted:
05/03/2013
Updated:
05/03/2013

Payment protection insurance (PPI) complaints have soared to ‘unprecedented’ levels, with the financial services ombudsman taking on 2,000 new cases each day.

Complaints about PPI made up three quarters (74%) of the total complaints  to the ombudsman service between 1 July and 31 December 2012- with 211,885 new PPI complaints compared to 85,562 in the previous period.

Five financial services groups accounted for 78% of all new PPI cases during the period. In total, the ombudsman has received more than 600,000 complaints about PPI.

Across all individual businesses included in the data, the uphold rate for PPI complaints ranged from the ombudsman finding in the consumer’s favour 97% of the time, to businesses where only 6% of complaints were upheld against them.

Meanwhile, the total number of complaints sent to the ombudsman service doubled in the last six months compared to the previous half year period, with Lloyds topping the list of shame.

During the six-month period to 31 December 2012, the service took on a record total of 283,251 new complaints – a 110% increase on the previous six months.

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Lloyds was the most complained about with 45,727 complaints. It was followed by Barclays with 44,725 complaints, and Bank of Scotland with 39,375.

Natalie Ceeney, chief executive and chief ombudsman, said:”The number of PPI complaints has continued to increase at unprecedented levels and we are now regularly taking on around 2,000 new cases each day. Over the last year or so, we have geared up substantially to deal with these record complaint numbers and we are now resolving more cases each week than ever before.

“However, as the complaint levels show no sign of slowing, consumers are increasingly having to wait longer to get their complaints sorted – with many businesses still continuing to cause unnecessary delays.

“Where businesses have shown a real commitment to better customer service and diligent complaints handling – including actively engaging with the ombudsman – cases are resolved more quickly and easily, to the benefit of everyone.”