The Financial Ombudsman believes that claims management companies have driven the number of complaints regarding packaged bank accounts and the numbers of payment protection insurance claims. The overall number of complaints have increased by 8 per cent to 173,994 new cases in the first half of 2015. Half of the cases brought in were upheld.
New cases of Payment Protection Insurance were reduced by 10 per cent to 94,091. However, a landmark Supreme Court decision may change the FCA’s regulation, which could again increases the number of PPI complaints.
Claims management firms had pushed up packaged bank accounts, which took up the greater number of general financial complaints up to 45 per cent in 2014 with 79,550 according to FOS figures.
Packaged bank accounts bundle accounts with extra features including travel insurance, phone insurance or, better loan rates or higher credit scores. Some of these features turn out to be useless for many customers.
Chief Ombudsman Caroline Wyman said:
“Though the number of new PPI cases has reduced in the first half of this year, the decline has not been as steady or as marked as generally expected. This is as least in part due to the continued high levels of activity by claims managers in this area.”