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| PPI complaints rise 24% in six months, says FCA | PPI complaints rise 24% in six months, says FCA |
| (about 1 hour later) | |
| Complaints about Payment Protection Insurance (PPI) have jumped to their highest level in three years, the regulator has said. | |
| The Financial Conduct Authority (FCA) said the number of complaints rose by 24% in the first half of the year, compared with the previous six months. | The Financial Conduct Authority (FCA) said the number of complaints rose by 24% in the first half of the year, compared with the previous six months. |
| PPI complaints totalled 1.11 million, compared to 899,000 in the second half of 2016. | PPI complaints totalled 1.11 million, compared to 899,000 in the second half of 2016. |
| The rise happened even before the FCA announced a complaints deadline. | |
| Consumers have until the 29 August 2019 to apply for compensation. | Consumers have until the 29 August 2019 to apply for compensation. |
| The FCA said PPI accounted for 82% of the £2bn paid out in total to consumers whose complaints were upheld over the six months in question. | The FCA said PPI accounted for 82% of the £2bn paid out in total to consumers whose complaints were upheld over the six months in question. |
| The number of complaints is the highest since the first half of 2014, when 1.2m people applied for compensation. | |
| So far £27bn has been refunded to people who were mis-sold PPI insurance, which was supposed to cover them for loss of income should they be unable to work. | So far £27bn has been refunded to people who were mis-sold PPI insurance, which was supposed to cover them for loss of income should they be unable to work. |
| But the insurance was unnecessary for most consumers. | But the insurance was unnecessary for most consumers. |
| The FCA is running a publicity campaign to encourage people to claim before the deadline, featuring the actor Arnold Schwarzenegger. | The FCA is running a publicity campaign to encourage people to claim before the deadline, featuring the actor Arnold Schwarzenegger. |
| It believes that most of those eligible to claim have not yet done so - raising the spectre that the banks may need to set aside even more cash. | It believes that most of those eligible to claim have not yet done so - raising the spectre that the banks may need to set aside even more cash. |
| So far they have reserved some £37bn. | So far they have reserved some £37bn. |
| The FCA gave no comment on why there has been such a large rise in PPI complaints. | |
| By contrast, figures from the Financial Ombudsman Service (FOS) - shown above - show a fall in the number of complaints since 2014. | |
| The FCA counts complaints made direct to a person's bank or credit card company, in the first stage of the process. | |
| The FOS only gets involved if the consumer, having had their complaint rejected by their bank, decides to take it further. | |
| In other words it appears that more people are complaining to their bank or card provider, but fewer are pursuing it when it is initially rejected. |