Payment protection insurance complaints quadruple

Whilst us Brits are not adverse to a good moan – typically about the weather being too cold, or too hot for that matter – complaints to banks have hit new highs in the last year largely due to the payment protection insurance mis selling scandal.

Millions of customers were mis sold payment protection insurance, or PPI as it is commonly shortened to, when they took out a loan or credit card. The policy was intended to protect customers should they be made redundant or be unable to work due to illness or an accident and meet their monthly repayments.

Lenders have collectively set aside approximately £10bn to cover the cost of PPI complaints.

Lloyds Banking Group received 860,000 complaints from January to June 2012, an increase of 146 per cent year-on-year. PPI complaints trebled during the same period to 738,000.

Complaints to Royal Bank of Scotland by RBS and NatWest customers increased by 128 per cent to around 492,000 complaints while Barclays received 442,000 complaints with PPI complaints jumping by 280 per cent to 280,000.

Meanwhile Santander saw an four-fold increase in general insurance complaints and complaints to HSBC UK rocketed by 73 per cent following PPI complaints more than quadrupling to 102,000.