PPI complaints tail off

Complaints made to the Financial Ombudsman Service (FOS) about payment protection insurance (PPI) have tailed off by more than half, figures showed today.

The watchdog said that it received 19,259 new consumer complaints about the issue between July and September.



This compared with 56,025 new complaints during the previous quarter, between April and June.



During the latest quarter, 92% of complaints were resolved in favour of the consumer, compared with just over half (55%) between April and June.



The fall in PPI complaints meant that in total, the FOS received 50,645 complaints generally between July and September, a sharp drop on 81,301 in the previous quarter.



The FOS said that if PPI were taken out of the equation, complaints to it about other matters had actually gone up by nearly a quarter.



Complaints about credit card accounts for example have risen to 5,751, from 5,500 in the previous quarter.



New complaints about house mortgages have also gone up significantly, up from 2,044 in the previous quarter to reach 2,796.



A spokeswoman for the FOS said there had been a "drag effect" on PPI complaints while the banking industry fought a legal battle on the issue.



But the latest figures indicated that banks were resolving matters with their customers in the first instance, rather than customers resorting to the FOS.



Asked if the PPI complaints had peaked, she said: "It is a matter of waiting to see how things pan out."



The number of complaints taken to the FOS about PPI rocketed to 104,597 in the financial year 2010/11 as massive publicity surrounding the issue alerted people to possible mis-selling of the insurance.



The previous year saw less than half the number of complaints, a total of 49,196.



The Financial Services Authority (FSA) said in August that the financial sector paid out £215 million in compensation to victims of the PPI mis-selling scandal in the first half of the year.



The banking industry dropped its legal challenge in May over whether new FSA rules on PPI mis-selling claims could be applied retrospectively.



The move meant more than three million people were in line for compensation, expected to cost firms between £7 billion and £9 billion.



The issue has been predicted to be the biggest mis-selling scandal the UK has ever seen, with final PPI compensation likely to dwarf the £4.5 billion paid to people who were wrongly sold personal pensions and the £2.7 billion paid to victims of endowment mis-selling.

PA

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Mortgage Administrator

    £20000 - £25000 per annum: Recruitment Genius: We are a vibrant and establishe...

    Recruitment Genius: Payments Advisor

    £15000 - £20000 per annum: Recruitment Genius: An experienced Repayments Advis...

    Recruitment Genius: Investment Analyst

    £25000 - £30000 per annum: Recruitment Genius: This leading provider of financ...

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + competitive: SThree: Are you looking to take your ...

    Day In a Page

    Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

    ‘Can we really just turn away?’

    Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
    Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

    Nine of Syria and Iraq's 10 world heritage sites are in danger...

    ... and not just because of Isis vandalism
    Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

    Girl on a Plane

    An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
    Why Frederick Forsyth's spying days could spell disaster for today's journalists

    Why Frederick Forsyth's spying days could spell disaster for today's journalists

    The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent
    Markus Persson: If being that rich is so bad, why not just give it all away?

    That's a bit rich

    The billionaire inventor of computer game Minecraft says he is bored, lonely and isolated by his vast wealth. If it’s that bad, says Simon Kelner, why not just give it all away?
    Euro 2016: Chris Coleman on course to end half a century of hurt for Wales

    Coleman on course to end half a century of hurt for Wales

    Wales last qualified for major tournament in 1958 but after several near misses the current crop can book place at Euro 2016 and end all the indifference
    Rugby World Cup 2015: The tournament's forgotten XV

    Forgotten XV of the rugby World Cup

    Now the squads are out, Chris Hewett picks a side of stars who missed the cut
    A groundbreaking study of 'Britain's Atlantis' long buried at the bottom of the North Sea could revolutionise how we see our prehistoric past

    Britain's Atlantis

    Scientific study beneath North Sea could revolutionise how we see the past
    The Queen has 'done and said nothing that anybody will remember,' says Starkey

    The Queen has 'done and said nothing that anybody will remember'

    David Starkey's assessment
    Oliver Sacks said his life has been 'an enormous privilege and adventure'

    'An enormous privilege and adventure'

    Oliver Sacks writing about his life
    'Gibraltar is British, and it is going to stay British forever'

    'Gibraltar is British, and it is going to stay British forever'

    The Rock's Chief Minister hits back at Spanish government's 'lies'
    Britain is still addicted to 'dirty coal'

    Britain still addicted to 'dirty' coal

    Biggest energy suppliers are more dependent on fossil fuel than a decade ago
    Orthorexia nervosa: How becoming obsessed with healthy eating can lead to malnutrition

    Orthorexia nervosa

    How becoming obsessed with healthy eating can lead to malnutrition
    Lady Chatterley is not obscene, says TV director

    Lady Chatterley’s Lover

    Director Jed Mercurio on why DH Lawrence's novel 'is not an obscene story'
    Farmers in tropical forests are training ants to kill off bigger pests

    Set a pest to catch a pest

    Farmers in tropical forests are training ants to kill off bigger pests