Providers of payment protection
insurance (PPI) should beware a new wave of consumer claims, after
the media launched another broadside against the product.
The Daily Telegraph reported that the
Financial Ombudsman is ruling in consumers’ favour in “almost 9 out
of 10 complaints it receives about this controversial insurance
product”.
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But Barbara Russell, head of marketing and
product development at insurer Cardif Pinnacle, riposted: “It is
important to bear in mind that the 90 percent of complaints
overturned is only reflective of the complaints that the Ombudsman
has received, which is on average less than 3 percent of all the
complaints received by insurance companies. With this in mind,
those where decisions are overturned actually only relate to about
2.7 percent of all complaints received in total.”
She concluded: “While no-one disputes that
there are instances where policies have not met customers'
requirements, often due to the sales process not clarifying the
suitability of the product for the customer up front, the referral
rate to the Ombudsman is very low.”
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By GlobalData
