The Financial Ombudsman Services (FOS) is to expand its staffing to deal with the increasing numbers of payment protection insurance complaints.
According to recent figures, 1.27 million people contacted the FOS in the 2011/2012 financial year with around 60 per cent of those in regards to mis sold PPI.
However complaints about payment protection insurance were not the only grievance customers had with lenders. Complaints about mortgages and buildings insurance rose by 35 and 31 per cent respectively while criticism over contents insurance policies, debt collection and health and medical cover also saw substantial increases.
During the last financial year the FOS’s uphold rate increased from 51 per cent to 64 per cent, suggesting the majority of customers do have reason for complaint.
This comes after lenders criticised the number of “bogus” PPI claims being made in recent months.
According to the FOS there were approximately 6000 invalid PPI claims made last year. However this translates to just 2.5 per cent of all complaints made, a minute number consider the scale of the payment protection insurance scandal.
Payment protection insurance was mis sold to millions of customers who neither wanted, needed or even knew about. It is estimated is cost lenders around £9bn collectively.