PPI still dominates complaints to financial ombudsman

Wednesday, 04 July 2012 10:13

By Kay Carson

Payment protection insurance (PPI) mis-selling has once again dominated latest complaints received by the Financial Ombudsman Service (FOS), new figures show.

Some 56 per cent of new complaints – more than 32,000 – made by consumers during April, May and June were about PPI, the financial mediator said.

The ombudsman said that 69 per cent of the cases were upheld.

Despite the high level of PPI cases, the total number of complaints received by the FOS was lower than the previous quarter, down from at 57,790 to 76,522.

Current accounts and credit card accounts were the next most complained about products, each producing six per cent of complaints to the FOS.

Car and motorbike insurance, and overdrafts and loans each accounted for three per cent of gripes.

The ombudsman found in favour of the consumers in half of all new cases in during the second quarter of 2012.

However, mortgage complaints showed a marked increase over the year, according to the data.

A record 9,537 complaints were lodged in the financial year ending April 2012, up by a third on the year before.

The FOS said more than a million homeowners had seen their mortgage lending rate go up in May after lenders blamed the frail economy and increased wholesale costs of mortgage funding.

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