Moans about payment protection insurance (PPI) have seen overall complaints to banks rocket by nearly 60% in the first six months of this year, with finance brands being bombarded by an average of 19,550 complaints a day.
The damning figures, published by the Financial Services Authority (FSA) show that brands received a total of 3.58 million complaints in the period. Complaints about PPI account for 62% of the total figure.
The onslaught in PPI claims has been triggered by a rise in claims management companies advertising on TV and in the press. They have also been using aggressive telemarketing techniques, which itself has led to a major surge in sign-ups to the Telephone Preference Service.
“PPI is now the biggest financial scandal of all time,” said Peter Vicary-Smith, chief executive of consumer group Which?. The banks must set aside more money for PPI claims and make it easier for customers to get back what they are rightly owed, without any hassle.”
On a banking brand level, the institution receiving the most complaints from customers was Barclays, with 442,266 complaints over the six months. Lloyds Banking Group, which includes Halifax and Bank of Scotland, witnessed the most complaints.
But if PPI complaints are excluded, Santander and Barclays head the list.
In total, complaints about banking products rose by 5% to 828,040 in the first half of the year. Increasing areas of concern included savings products, credit cards and loans. However, complaints about current accounts fell 13%.
