The number of complaints received by the Financial Ombudsman Service (FOS) concerning payment protection insurance (PPI) in the second half of 2012 more than doubled compared to the first half of the year and increased more than four-fold on the same period in 2011.
From 1 July to 31 December 2012, the ombudsman received 211,885 PPI complaints, or 74.80% of a total 283,251 complaints received on any topic, taking the running total of PPI complaints past 600,000.
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The number of complaints far exceeds both the total of 85,562 received between 1 January and 30 June 2012, when PPI complaints accounted for 63.30% of all new complaints received, and 49,419 received in the second half of 2011.
At the time of release of the H1 2012 figures, a spokesperson for the FOS said the majority of complaints were with banks rather than car finance providers but warned of the expected rise in complaints "unless banks take the opportunity to get involved".
At the time, the FOS claimed up to 1,500 cases could arrive in a single day, something which has been borne out by the latest results.
In the second half of 2012, Lloyds TSB received 42,195 complaints over PPI (or 92.28% of 45,727 total complaints) and Black Horse received 5,888 complaints over PPI; 5,711 of which were upheld.
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By GlobalDataBarclays Bank Plc received 44,725 complaints, 37,883 (84.70%) of which concerned PPI, and of those, 29,170 were upheld.
Speaking at the third Financial Solutions Annual F&I Conference and Awards Dinner, Mark Hollinshead, director of Equity in Finance, advised attendees to expect the end of the clamour for PPI claims in 2014 for two reasons: Customers being permitted to raise a claim within six years of purchasing a policy, PPI selling ended in 2008, or within three years of being made aware of a problem, such as by the judicial review brought by banks in April 2011.
However, the Financial Services Authority has been tentative about a 2014 deadline, saying it would review the needs of the customer when considering an end to PPI claims.
richard.brown@timetric.com
