PPI Complaints are still higher

July 10, 2012 - PRLog -- Financial ombudsman services have released its latest reports about the complaints. Data released by the company shows that number of mis sold payment protection insurance complaints is still higher. Mis selling of PPI plans are biggest cause of complaints received by the FOS. However, there is fall in overall number of complaints received by ombudsman. This is clear from the second quarterly report of FOS that shows details of complaints from April to June. 56% of new complaints filed by consumers are just for unfairly sold PPI plans. Financial ombudsman service has received total 57,790 new complaints and dealt with the same in last three months period. It is less in comparison of complaints received in first quarter of the month that was 76,522. FOS has received ever 22,921 less complaints in compare of the same period of last year.

Other complaints received by the organization are for credit card and current account. More than half of these complaints go in favor of consumers. Payment protection insurance(http://www.ppiclaims.uk.com/payment-protection-insurance/) claims filed by the consumers were related with mortgages, personal loans and credit cards. Lender have sold payment coverage plan alongside other financial products. Payment coverage insurance plan made to provide payment coverage for unsecured debts when consumers lose their job or falling ill.

There were several consumers who took the plan even they were not eligible to get coverage due to some provision and exclusion. It happens due to lack of information provided by the insurance providers. After investing the case, financial services authority found several banks involved in PPI scandal. FAS fined banking institutions for this scandal. Banks involved in this scandal will also have to pay compensation for consumer losses.

PPI victims can file claim to receive compensation for their losses. But it has been found that thousands of PPI claims(http://www.ppiclaims.uk.com/) are bogus. Ombudsman handles more than 2, 50, 000 disputes in a year and inquiring around a million complaints.