PPI is most complained about thing in table of awfulness
Payment protection insurance (PPI) was the most complained about financial thingummy in Britain in the last year. It was so jarring and irritating that it accounting for almost two thirds of consumer disputes mediated by the Financial Ombudsman Service.
PPI, which allows you to maintain loan repayments even if they lose their job, prompted a whopping 157,716 disputes during 2011. That's the most complaints ever generated by a single product.
The insurance, which can be tied in with loans or credit cards, caused a kerfuffle last year as it was sold to consumers who didn't actually know they were buying it, which of course, saw one of the biggest misselling furores in Britain's banking history.
Lloyds, Barclays and Royal Bank of Scotland all kept money aside (over £4 billion pounds) in preparation for paying all the compensation to PPI customers. The ombudsman said it mediated a total of 264,375 disputes between consumers and financial services companies in 2011.
"This year's been a struggle for many consumers, who've found themselves burdened by debt, besieged by claims companies and bewildered by the complexity of financial services," chief ombudsman Natalie Ceeney said.