The number of people complaining about PPI is still high. Ms Wayman the chief Ombudsman says that the number of complaints they are receiving at Financial Ombudsman is leveling. Barclays and Lloyds tops the list of the bank withy most PPI complaints. A third of complaints that are being handled by Financial Ombudsman are on PPI. During the second phase of 2014 Financial Ombudsman Service (FOS) received about 105,000 PPI complaints. For the whole the number of complaints that were handled by FOS is about 238,000.
Financial complaints about other products are lower and have remained stable for the whole year. During the first phase of the year 2014 FOS handled about 56,771 complaints on financial products. During the second phase this number was a stable as they handled about 57,310 cases. Statistics are showing that investment cases have increased by 4% and banking complaints have increased by 8%.
Most complained banks
The number of complaints from Lloyds banking group has decreased by 25% from the first phase of 2014. However this banking group is the most complained about in the second phase of 2014. FOS has to deal with about 46,000 cases from its entire brand for the second phase only. Barclays bank came in second with 21,500 cases and Royal bank of Scotland filled the third slot with 13,400 cases. Of these 46,000 cases 20,000 complaints were PPI related complaints. This was from 1st July to 31st December 2014. During this period it had an uphold rate of 82% and Barclays bank came second recording about 157,000 cases during the same phase.
PPI claims have become popular recently but mis-selling of PPI started decades ago. This policy was sold alongside credit cards, banks and other lenders. Banks and credit card companies discovered that there was a gold mine lying in selling PPI policies. Bank would make a lot of profit and they used this chance to sell PPI policy. They made a mistake and sold PPI to people who did not need it. It was on the year 2004 that Vincent Cable looked into the matter. A lot banks have been fined by FOS and billions have been paid to complaining customers. This however has not stopped these banks from mis-selling PPI policies.
What it will take
PPI is a very important protection. It would offer protection to a person holding a loan or credit if they lost their job, sickness or were in a position and could not be able to repay their loan. However these banks could not tell their customers how they would make their claim. Also some lenders sold this policy to their knowledge. Some people did not need this policy and hence they could claim money they have spent paying for this insurance. Caroline Wayman says that they had to increase the number of their employees to handle these complaints. She says that a lot of complaints they are handling are in PPI.
There is a positive trend that the numbers of complaints are starting to level. Also the nature of complaints that they are handling is starting to change with the recent ones being more complex and hard fought. She says that it will take time for people to trust their financial sector and gain confidence on them.