PPI complaints rocketed before City regulator set 2019 claim deadline

 
Oliver Gill
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The FCA launched a publicity campaign featuring Arnold Schwarzenegger to highlight its 2019 deadline for claiming PPI mis-selling (Source: Getty)

Payment protection insurance complaints jumped in the first half of 2017, hitting a three year high, the City regulator said today.

PPI complaints rose by 24 per cent to 1.1m from 899,000 in the first half of 2016.

The rise came before a controversial deadline was put in place on PPI mis-selling claims.

In total, there were 3.3m complaints in the first six months of the year, up from 3m in the second half of 2016.

Lloyds Bank, together with subsidiary Bank of Scotland, received the largest number of complaints, some 600,576. It was followed by Barclays, which received 446,978 complaints. Royal Bank of Scotland and sister bank Natwest received a total of 278,594 complaints.

Financial Conduct Authority executive director of strategy and competition Christopher Woolard said the regulator had tightened up rules that force banks and other financial institutions to report on complaints.

"[This] gives us a fuller picture of where the industry might not be meeting customer needs," he said.

But even allowing for the change in reporting rules, and some progress made, the [change in] numbers are still significant.

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PPI

In August, a deadline of 29 August 2919 was placed on applying for PPI compensation. The FCA is eager to weed out potential claimants and launched a publicity campaign to do so in August featuring the actor Arnold Schwarzenegger.

Almost £2bn was handed back to consumers during the first half of 2017, the FCA said. This is 82 per cent of total redress payments. A total of £27bn has been handed back to consumers that were mis-sold policies.

A spokesperson for Lloyds – which set aside a further £1bn for PPI redress this summer – said the lender had a "clear focus on removing the reasons why customers have cause to complain".

"Our volume of incoming complaints continues to fall and we now receive 4.2 complaints per 1000 accounts."

Read more: Banks face millions more PPI claims as FCA uses Arnie to arouse interest

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