PPI is Still The FOS’ Top Complained- About Financial Product

November 10, 2016
by admin in PPI News

The Financial Ombudsman Service — mediating consumer-business issues since before the PPI scandal — reports that payment protection insurance dominates the top tier of its workload.

The Ombudsman reports receiving an extra 43,000 complaints between July and September after banks rejected their consumer’s legitimate PPI claims.

About 57% of these complaints continued to be upheld in favour of consumers.

The Ombudsman said PBAs or Packaged Bank Accounts were the second most complained-about financial products after PPI.

The number of PBAs are unequal to PPI with just 5,317 during the same quarter, not more than half the FOS’ PPI troubles.

After their announcement of profit results, the UK’s banking industry is to provide a further £1.5bn for their PPI misgivings.

Analysts are split whether PPI would truly end by the June 2019 deadline the City watchdog had imposed.

The City watchdog said June 2019 is the final  cut-off point for any new complaints it would lodge with banks.

Lloyds has set aside more than £17.1bn more than other banks. Barclays is at £8.5bn. RBS and HSBC now have a total of £4.7bn and £2.9bn respectively.

Single premium PPI policies had been banned from sale immediately in 2011 after the then-FSA had won against the banking industry’s legal challenge of banning claims rules to streamline the claiming process for consumer PPI claims.