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Daily Insurance Industry News
Sunday 18th of November 2018
December 15, 2008

FOS reports surge in PPI complaints

by Gill Montia

Story link: FOS reports surge in PPI complaints

The Financial Ombudsman Service (FOS) says it has received over 25,000 complaints relating to the sale of payment protection insurance (PPI), since January.

By comparison, during the 12 months to April 2008 the service recorded 10,652 complaints regarding PPI, up significantly from 1,832 during the previous 12 months.

At the beginning of the year, the FOS warned that changing economic circumstances could result in an increase in claims for PPI because a rise in redundancies would almost certainly reveal further instances of mis-selling.

The scandal surrounding leading lenders that have mis-sold the insurance has been making uncomfortable reading for years.

Last week credit card provider, Egg, became the latest firm to be fined by the Financial Services Authority for mis-selling; in some cases picked up by the regulator PPI was applied to an account without the customer’s consent.

Chief ombudsman, Walter Merricks, comments that “single issue” consumer campaigns now dominate the FOS’s workload, adding that this year complaints about PPI and credit card charges will together out-number the 30,000 complaints received about bank charges during 2007.

Mr Merrick is keen to see changes that will allow single issues that directly affect large numbers of consumers to be resolved collectively.

 

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