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

As thousands of borrowers make compensation claims each week for payment protection insurance, lenders are dealing with even bigger payouts


Five thousand folks complain every single week about payment protection insurance (PPI) to the client dispute body, the Fiscal Ombudsman Service.

Banking institutions have so far paid out £15.1bn considering that January 2011 for selling unnecessary insurance coverage to borrowers. But a new wave of complaints every single week – such as the settlement of PPI claims as well as mis-offering situations – indicates lenders are not off the hook however.

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

The scandal has abated since final 12 months, when the ombudsman was dealing with around 12,000 PPI complaints a week.

But complaints are still well above 2012 levels, with weekly claims amounts 50pc greater than two years ago.

PPI was typically added to people’s loans and credit score card agreements without them totally knowing what it was or even realising it was there at all.

More: do I owe tax on PPI payouts?

The insurance is developed to assist borrowers repay their debts if they turn into sick or drop their work, but in many 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 explained PPI disputes have been not solely associated to mis-marketing instances. It stated it is increasingly currently being asked to stage in at later stages, like exactly where lenders and borrowers disagree in excess of the settlement of PPI claims.

Situations rule in favour of the borrower in In 61pc of cases, slightly down from final year’s regular of 65pc.

But borrowers could nonetheless be left out of pocket as £5bn of compensation has gone straight into the pockets of claims management companies.

• Have you had a issue reclaiming PPI? E mail