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Ombudsman still receiving 1000 complaints a day on PPI mis-selling

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6th March 2014

The ombudsman said the most complained-about financial institution in the second half of 2013 was Lloyds TSB, followed by Bank of Scotland, Barclays, MBNA and HSBC, though it said the ranking was not weighted for the number of customers each company has. The total number of complaints fell by 24% to 248,801 from 327,035 in the first half of the year. Only MBNA and HSBC saw an increase in complaints compared to the earlier period.

Tony Boorman, chief ombudsman, said: "We're still a long way from being able to say that PPI is sorted once and for all. Over 1000 people every day are still asking us to sort out PPI problems that they've not been able to resolve directly with their bank."

Real Time Claims can work on your behalf to reclaim your mis-sold PPI by escalating cases to the Financial Ombudsman Service if necessary.

FOS figures reveal huge differences between banks when it comes to adjudications. Of the 36,506 complaints made against Barclays, the ombudsman ruled in favour of the customer in 77% of the cases. But of the 6,436 complaints made against Nationwide building society, only 10% were upheld.

The number of PPI cases being upheld is also falling. In the first half of 2013, three-quarters of the 266,228 cases were upheld in favour of the customer, but in the second half, only 56% of the 190,356 cases were found in favour of the customer. Around half of complaints about PPI come from controversial "claims management companies" but the ombudsman said there was no significant difference between the uphold rates compared to complaints that were lodged by individual customers.

For complaints about financial products other than PPI, the total number of cases referred to the ombudsman was 8% lower than the first half of the 2013 (55,747 compared to 60,807). This involved banking complaints reducing by 11% and insurance cases by 7%.

Over the past two years, the number of staff at the Financial Ombudsman Service has more than doubled to 4,000, and members of the public typically have to wait between 18 months and two years for an adjudication. As the number of PPI cases starts to fall, delays should start to improve, the ombudsman said. It said most staff are on three-year rolling contracts, and that there are no plans for layoffs.

Source: The Guardian

Posted in Complaints, Financial Ombudsman Service, FOS, PPI, Bank of Scotland, Barclays, MBNA, HSBC, Lloyds TSB

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