Friday 26th October 2007
More Britons are complaining about issues relating to payment protection insurance (PPI), the Financial Ombudsman Service (FOS) reveals.
In the latest newsletter from the service, the industry body reports a 39 per cent annual increase in the number of complaints handled.
These fall into three main groups, with more than 4,000 cases received by the FOS last year.
A main area of contention occurs when a consumer pays upfront for their PPI policy but then repays the loan early - meaning they have paid for insurance they no longer need.
Some Britons buy the cover but then are rejected when they attempt to make a claim, the FOS notes.
And perhaps the highest-profile disputes relate to mis-selling, when a customer is not made aware of why they need the insurance.
The Financial Services Authority recently found that some lenders have stopped selling PPI completely under pressure to make sure staff are suitably trained to comply with industry regulations.
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