The Impact PPI Has Made on Financial Institutions

PPI complaints have made up over half of all grievances made against British banks and financial services firms in the first half of the year, new studies have revealed.

Relating back to banks, insurers and other financial businesses the Financial Ombudsman Service show that complaints rose by 3% in the first half of 2016 compared to the last six months of 2015.

Complaints about PPI accounted for a massive 54% of all cases and this totaled 91,381, which was slightly lower than the 92,667 from the previous period.

The Bank of Scotland were the biggest offender receiving the highest number of PPI grievance at 17,358 and followed very closely behind Lloyds at 16,626 complaints.

Although it’s a few years now since PPI complaints peaked, institutions have been receiving over 3,000 a week for six years running – despite wider expectations that numbers will fall.

Complaints over other financial products NOT including PPI jumped by 8% to 77,757 because complaints about payday lending doubled from the previous six months.

Lloyds bank is 9% owned by the government and received the most complaints overall and account for a massive 22,241 of complaints. 70% of which were upheld in the consumer’s favour.

Lloyds announced it would shut 200 branches of banks and cut 3,000 jobs in an efficiency drive back in July.

Barclays received the third-highest number of complaints at 18,603, with 47% of those upheld. Followed by Barclays was HSBC and NatWest, which received 11,082 and 8,027 complaints, correspondingly.