Banking Complaints Overshadow Payment Protection Insurance Mis Selling

April 2, 2015
by admin in PPI News

UK’s general banking complaints have surged in the second half of 2014, overpowering mis sold PPI after nearly four years. PPI cases had dropped 14% in the latter half of 2014 while a noted 8% increase in the number of banking and credit card complaints had happened.

Analysts say that the Financial Conduct Authority’s reviews into overdraft charges and Packaged Bank Accounts (PBAs) had pushed customers to file more claims.

The FCA had also banned all financial product insurance that allow consumers to opt-out.

The drop in PPI meant that overall financial firm complaints had dropped by 7 percent in the second half of the year from the first half of 2014.

Meanwhile, the FCA had proposed two things to prevent PPI.

–       The FCA hinted at possibly capping payment protection insurance complaints with a time limit should banks prove to be efficient and fair in handling consumer PPI complaints.

–       The FCA also plans to reverse the burden-of-proof scenario for Senior Banking Officials. If no evidence shows that the officials did everything in their power to prevent a financial catastrophe, they could be imprisoned for recklessness for up to five years.

As PPI complaints drop, consumer complaints saw 60% of cases in favour of the consumer, the highest level since 2006.