Complaints about Payment Protection Insurance (PPI) are continuing to rise, the city regulator has said.The Financial Conduct Authority (FCA) said the number of complaints rose by 24% in the first half of the year, compared with the previous six months.PPI complaints totalled 1.11 million, compared to 899,000 in the second half of 2016.The rise occurred even before the FCA announced a deadline for all PPI complaints.Consumers have until the 29 August 2019 to apply for compensation.FCA announces deadline for PPI claims
Bank of Scotland most complained about firm
The FCA said PPI accounted for 82% of the £2bn paid out in total to consumers whose complaints were upheld over the six months in question.
So far £27bn has been refunded to people who were mis-sold PPI insurance, which was supposed to cover them for loss of income should they be unable to work.But the insurance was unnecessary for most consumers.The FCA is running a publicity campaign to encourage people to claim before the deadline, featuring the actor Arnold Schwarzenegger.It believes that most of those eligible to claim have not yet done so – raising the spectre that the banks may need to set aside even more cash.So far they have reserved some £37bn.The FCA gave no comment on why there has been such a large rise in PPI complaints.
By contrast, figures from the Financial Ombudsman Service (FOS) – shown above – show a fall in the number of complaints since 2014.The FCA counts complaints made direct to a person’s bank or credit card company, in the first stage of the process.The FOS only gets involved if the consumer, having had their complaint rejected by their bank, decides to take it further.In other words it appears that more people are complaining to their bank or card provider, but fewer are pursuing it when it is initially rejected.