Record Number of PPI Complaints

In the last year, the FOS dealt with more than 100,000 product disputes – a new record for the ombudsman.

In total, FOS handled a staggering 206,121 formal disputes in 2010-11 – a 26% leap on the last financial year.

51% of those received related to the sale of PPI, a factor which made up the highest number of complaints ever received in a year about a single financial product – 104,507 in total.

However, in spite of the unprecedented rise, there were actually fewer disputes during the year. Almost 165,000 cases were resolved in the same period, slightly down on the previous year – although this has been attributed to the slow progress on the overwhelming surge of complex PPI complaints.

The FOS's annual review stated: "PPI complaint resolutions were hampered by delays, uncertainty and less cooperation from some financial businesses, as a result of the legal challenge on PPI-related matters brought during the year by the British Bankers' Association on behalf of a number of high-street banks."

Original article courtesy of Credit Today.