The challenges of the Financial Ombudsman Service
workload on dealing with complaints for payment protection insurance sold by
banks and other lenders are unprecedented. 300,000 cases have been received by
the end of 2011.
The number of new complaints about mis-sold PPI –
at least 165, 000 – will account for around 60% of new cases in 2012.
Initial feedback from lenders suggests that most
believe substantial volumes of PPI complaints will arise for another two or
three years. The number of PPI complaints (1 million) made direct to banks and
other financial businesses last year alone, is incredible.
This horror story turns many people off from
buying income protection insurance, but there are many reputable insurers and
specialists who sell direct to customers. You do not have to buy from your
Income protection insurance news: 27 January 2012