PPI complaints surge in late 2010
UK banks have come under severe criticism
from consumer watchdog Which? after it emerged that payment
protection insurance (PPI) claims drastically increased in late
2010.
According to figures released last week by the Financial
Services Authority (FSA), the number of PPI made by consumers rose
by 63% in the final six months of 2010.
Reacting this week, Which? lambasted the UK's banking
system, claiming "a 63% increase in the number of PPI complaints
shows the widespread mis-selling that's been going on for years,"
according to Chief Executive Peter Vicary-Smith.
"With almost half a million PPI complaints made in six
months, the industry has to stop trying to wriggle out of its
responsibility to customers," he added. "We're also seeing a
worrying trend of banks using the Judicial Review as an excuse to
delay processing complaints."
The FSA's figures showed that Barclays Bank was the most
complained about financial services firm in the second half of 2010
with 205,151 complaints received.
But what is PPI? PPI is designed to cover a person's loan
or credit card repayments if they fall ill, have an accident or are
made redundant. Companies typically try to sell PPI when a person
submits an application for a credit card or loan, but there have
been many instances of mis-selling in recent years.
Due to this, some consumers have found themselves unable
to claim on their PPI policy, despite spending a significant amount
of money on it.
If you feel you've been mis-sold PPI in recent months,
seek expert advice today and make sure the banks are giving you the
service you deserve.