Payment protection insurance has become the most complained about financial product according to latest figures from the Financial Ombudsman Service (FOS).
In the last 12 months (to March 2012) the FOS received over 1.2m complaints about financial services and its products. Of those complaints, around 60 per cent were in regards to a mis sold PPI policy making the protection product the most complained about ever.
According to Nicholas Montagu, FOS chairman, the ombudsman is receiving over 1000 new cases of payment protection insurance mis selling every single day.
Meanwhile investment-related complaints and general banking complaints dropped 4 per cent and 1 per cent respectively but insurance complaints – even excluding PPI related grievances – jumped 31 per cent with Which? taking as proof that financial institutions are still not acting in the best interests of its customers.
Richard Lloyd is the Executive Director of the consumer group:
“The record increase in the number of new complaints going to the financial ombudsman shows that too many financial institutes are still failing to treat customers fairly when things go wrong. The fact that over 250,000 people took their problem to the ombudsman this year is further evidence that banks and insurers must transform the way they handle complaints.”