PPI complaints drop, but don't let that fool you
Complaints about PPI (payment protection insurance) have fallen from last year's figures, which may sound like good news, but according to the Financial Ombudsman Service, it is still at a historically high level.
Basically, this drop isn't particularly good news as it is akin to saying 'man only kicked you up the arse 40 times last year, down from the previous year's 57 buttock assaults.'
The figures are still officially 'whopping'. The FOS said it took 133,819 PPI complaints in the first six months of the year, compared with 193,054 in the previous six months and these complaints still account for around 70% of the all the cases that the ombudsman receives.
The FOS said: "Around 5,000 people a week are currently asking the ombudsman to look into their PPI complaint. This is down from the highs of 2013 when we were receiving over 12,000 a week, but still significantly more than any other financial product."
This year, the FOS took on just shy of 400,000 new cases and since 2011, banks have coughed-up £16bn to customers in compensation, and they're going to be paying out more.
The FOS's chief ombudsman, Caroline Wayman, said: "Responsibility for sorting out the mass mis-sale of PPI is still the major part of the ombudsman's workload. We're seeing more and more people turn to us in frustration where they feel their bank or insurer simply doesn't understand or really care."
And get this - complaints are likely to rise even further because the FCA ordered the banks to reopen a further 2.5 million complaints.