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| PPI complaints at 11,000 a week, says ombudsman | |
| (about 4 hours later) | |
| A record level of 11,000 complaints a week about mis-sold Payment Protection Insurance (PPI) were made to an ombudsman between October and December. | |
| This was double the rate seen during the previous three months, the Financial Ombudsman Service said. | This was double the rate seen during the previous three months, the Financial Ombudsman Service said. |
| The ombudsman found in the customer's favour in nearly two-thirds of cases. | The ombudsman found in the customer's favour in nearly two-thirds of cases. |
| Last year, banks paid out an average of more than £530m a month in compensation. The typical payment is nearly £3,000. | Last year, banks paid out an average of more than £530m a month in compensation. The typical payment is nearly £3,000. |
| Time limit request | Time limit request |
| PPI was sold alongside loans and credit cards to cover repayments if the policyholder fell ill or lost a job. In millions of cases it was unsuitable and would never have worked. | PPI was sold alongside loans and credit cards to cover repayments if the policyholder fell ill or lost a job. In millions of cases it was unsuitable and would never have worked. |
| Waves of publicity about the prospect of winning compensation from the banks which sold PPI cover have resulted in far more claims than expected. | Waves of publicity about the prospect of winning compensation from the banks which sold PPI cover have resulted in far more claims than expected. |
| Banks and building societies have set aside £13bn to cover the costs and compensation, but this bill could go higher. | Banks and building societies have set aside £13bn to cover the costs and compensation, but this bill could go higher. |
| With their finances under pressure, they have asked the City watchdog, the FSA, to impose a deadline on complaints, but the regulator has not agreed to one. | With their finances under pressure, they have asked the City watchdog, the FSA, to impose a deadline on complaints, but the regulator has not agreed to one. |
| The ombudsman provides an appeals service when complaints made directly to financial firms are turned down, so its workload is simply the tip of the iceberg. | The ombudsman provides an appeals service when complaints made directly to financial firms are turned down, so its workload is simply the tip of the iceberg. |