The Financial Ombudsman Service (FOS) has reported the volume of complaints it is handling over the mis-selling of payment protection insurance (PPI) doubled in the first half of 2012.
Between 1 January and 30 June 2012, the FOS received 85,562 new PPI complaints, similar to the number received for the same period in 2011 but up from 49,419 in the second half of 2011. A spokesperson for the ombudsman attributed the fluctuation to an extended window to study and respond to claims offered to banks last year.
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The news follows the announcement earlier this month by Martin Wheatley, managing director of the Financial Services Authority (FSA), that commission-based selling will be targeted in response to the PPI mis-selling furore.
Although saying the majority of PPI complaints were with banks, not the Motor Finance readership, the spokesperson warned there are going to be even more complaints in the coming months and years unless banks take the opportunity to get involved.
750 individual cases every day
Approximately a fifth of new complaints in the period translated to cases undertaken for investigation, it was confirmed.
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By GlobalDataNatalie Ceeney, chief executive and chief ombudsman at the FOS, said: The volume of PPI complaints doubled in the first half of 2012 and has continued to increase since then with up to 1,500 new cases now arriving each day.
Ceeney also noted more than half of claims were coming directly from customers, rather than using a claims manager, compared to less than a fifth a year ago.
Complaints regarding PPI accounted for 63% of the total complaints received by the FOS, H1 2012, up 27% on the previous six months.
Of all 135,170 new complaints, 169 financial businesses (of the 100,000-plus overseen by the FOS) accounted for 91% of them. Of all new PPI claims, just five banking groups accounted for 71% of cases.
Previously, the FOS has welcomed the work of the motor industry toward improving compliance and commended a report to parliament by the Finance & Leasing Association on the progress made by its Specialist Automotive Finance scheme.
Further comment and analysis of regulatory changes and PPI claims will be published in the September issue of Motor Finance magazine.
richard.brown@vrlfinancialnews.com
