Daily Insurance Industry News
 
 
Daily Insurance Industry News
Thursday 18th of October 2018
February 15, 2008

Financial Ombudsman inundated with PPI complaints

by Gill Montia

Story link: Financial Ombudsman inundated with PPI complaints

The Financial Ombudsman Service (FOS) has reported a sharp rise in complaints about payment protection insurance (PPI) and is calling on banks and other lenders to act more speedily to compensate customers who have been mis-sold PPI.

In January, the FOS received 1,499 complaints about PPI compared with 1,832 for the whole of the 2006/07 financial year.

Around 80% of the PPI complaints reviewed by the service are being upheld. The figure compares with 32% for complaints against the insurance sector overall; 32% for buildings insurance; 43% for motor insurance and 34% for travel insurance.

PPI is sold alongside personal loans, mortgages and credit card agreements. It is intended to cover repayments should the policyholder be unable to work, through accident, sickness or unemployment.

Both the Office of Fair Trading and the Competition Commission have investigated PPI, which has been criticised for being overpriced, mis-sold and not meeting the needs of customers.

Emma Parker, a spokeswoman for the Financial Ombudsman Service, says: “There were a record number of complaints about PPI in January and the number is increasing month-on-month. The fact that so many are being upheld suggests that firms aren’t doing enough to deal with these complaints before they come to us.”

Adding: “It bares comparison with the early days of endowment policy complaints, where firms were simply turning complaints down and leaving it to the Ombudsman to deal with. We will talk with trade bodies and firms to ensure they follow our guidance on processing these claims and deal with more of them before they get to us.”

 

News posted:



Related stories to Financial Ombudsman inundated with PPI complaints: