PPI News

FCA Identifies Fall in PPI Insurance Complaints

April 1, 2015

The Financial Conduct Authority has identified a 14% fall in PPI insurance complaints during the second half of 2014 according to the latest available data.

Firms that receive more than 500 complaints within a six month period are required by the Financial Conduct Authority (FCA) to publish statistics on their website relating to the number and nature of the complaints. The FCA then collates these statistics to monitor how many complaints are being received by financial institutions and to what financial product(s) they relate.

Since 2011/2, the complaints data collated by the FCA has been dominated by PPI insurance complaints. However, in the latest available data relating to the second half of 2014, PPI insurance complaints have seen a significant decline of 14% – the first time since late 2011 that PPI insurance complaints have accounted for less than 50% of the total number of complaints

Nonetheless, more than one million PPI insurance complaints were received by the leading banking groups in total – with units of the Lloyds Banking Group again taking first and second place on the list of the most complained about banks (figures relate to all complaints about insurance products):

  1. Lloyds Bank– 183,652
  2. Bank of Scotland– 179,250
  3. Barclays Bank – 157,822
  4. MBNA– 95,217
  5. HSBC – 76,968

Speaking about the fall in the number of PPI insurance complaints, Christopher Woolard – the FCA’s Director of Strategy and Competition – said: “Today’s statistics offer a mixed picture. When you take PPI out of the equation, complaints are still on the up.  So, while the overall decreases we have seen should be welcomed there is still more for financial services firms to do. The FCA’s challenge to those firms is to put the necessary measures in place to ensure we see a consistent fall across all sectors.”

Elsewhere within the FCA´s data, the total amount paid by monitored banking groups in redress for missold PPI policies and other insurance products increased slightly from £2.34 billion in the first half of the year to £2.44 billion between July and December.

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