The latest complaints handling report revealed that 92% of PPI complaints referred to the FOS in the third quarter of this year are being upheld in favour of the consumer.
The latest complaints handling data was published on 18 October 2011, with the report revealing that 92% of PPI complaints referred to the FOS in the third quarter of this year are being upheld in favour of the consumer, marking a rise from the previous quarter’s figure of 55%.
The sharp rise in complaints upheld is attributed to banks agreeing with the FOS’ findings regarding the complaints that were put on hold during the British Bankers’ Association’s judicial review of PPI complaint measures. All complaints upheld by the FOS were those that had been originally rejected by banks and other PPI sellers.
The overall number of PPI complaints referred to the FOS has fallen from 56,025 to 19,259, a drop of 66% from the second to third quarter. The FOS reported that the fall in cases had been expected as a backlog was cleared.
In other areas, mortgage complaints referred to the FOS increased by 37% from the second to third quarter, complaints about whole of life policies increased 52%, with over a third of these types of complaints being upheld in favour of the consumer. Concerns were raised earlier this month in regard to the rise in complaints about reviewable whole of life policies as the FOS highlighted that consumers felt it was not made clear that their premiums could increase significantly after a set period of time.
Personal pension complaints increased 46% (37% upheld). There were 46 complaints about structured capital at risk products (96% upheld). Portfolio management complaints numbered 371 (61% upheld). 304 complaints referred to investment ISAs (57% upheld), 200 complaints to unit-linked investment bonds (67% upheld), and 186 to with-profits bonds (23% upheld).