PPI driving huge jump in complaints, says Financial Services Authority

The ever rising tide of PPI claims pushed the total number of complaints about financial companies up to more than 3.5million in the first half of this year – that’s an increase of 59 per cent on the figures for the second half of 2011.

Figures released by the Financial Services Authority show that claims for mis-sold Payment Protection Insurance – designed to cover loan repayments if the borrower falls ill, dies or loses their job – accounted for 62 per cent of all complaints.

Some £3.2billion was paid out in compensation in the first six months of 2012; of this £2.9 billion was paid out for insurance claims which included PPI.

Concerns are now being expressed that banks and other financial companies may not have set aside enough money to meet all the claims.   

For more on this story, go to:  http://www.bbc.co.uk/news/business-19741607

For the full FSA report, go to:  http://www.fsa.gov.uk/library/other_publications/commentary/firm_spec