Weekly PPI complaints fall from 12,000 to 5,000

As thousands of borrowers make compensation claims each and every week for payment safety insurance coverage, lenders are facing even larger payouts

 

Five thousand people complain each week about payment safety insurance (PPI) to the client dispute body, the Monetary Ombudsman Support.

Banking institutions have so far paid out £15.1bn given that January 2011 for offering needless insurance to borrowers. But a new wave of complaints every week – including the settlement of PPI claims as properly as mis-marketing instances – implies lenders aren’t off the hook however.

PPI claims dominate disputes manufactured to the ombudsman, comprising two-thirds of all new complaints from the final two months.

The scandal has abated considering that final yr, when the ombudsman was dealing with all around twelve,000 PPI complaints a week.

But complaints are nevertheless nicely over 2012 levels, with weekly claims amounts 50pc higher than two years ago.

PPI was often added to people’s loans and credit card agreements without having them entirely comprehending what it was or even realising it was there at all.

Much more: do I owe tax on PPI payouts?

The insurance coverage is designed to support borrowers repay their debts if they turn into unwell or get rid of their job, but in a lot of instances PPI was unsuitable.

The financial ombudsman has admitted that the avalanche of complaints has left it with a backlog of unresolved claims.

The ombudsman mentioned PPI disputes had been not solely connected to mis-promoting circumstances. It explained it is more and more getting asked to step in at later on phases, including the place lenders and borrowers disagree in excess of the settlement of PPI claims.

Instances rule in favour of the borrower in In 61pc of instances, slightly down from final year’s common of 65pc.

But borrowers might nevertheless be left out of pocket as £5bn of compensation has gone straight into the pockets of claims management organizations.

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