New figures released by the Financial Conduct Authority (FCA) show that, more than a decade after the first warnings were sounded about the PPI scandal, more than 3.3 million consumers made a new complaint in 2018.
Even after 10 years PPI claims are still the most complained about product, making up 40% of all complaints notified to the regulator and the average payout for a single claim was £1,886.
Total compensation paid in successful PPI claims since January 2011 rose to £34.4 billion when the FCA announced £286.4 million was paid out in February of this year. More than 60% of PPI claims were upheld in 2018.
Though the total number of new claims is falling slightly as the PPI claims deadline of August 29th approaches, tens of thousands of new claims continue to be made.
They are in response to the FCA’s consumer awareness campaign starring an animatronic Arnie Schwarzenegger urges consumers to make sure they enter any PPI claim they might have before losing the chance with the deadline.
Two new categories of claim have been adding to the totals – family members making a claim on behalf of a loved one who has passed away and ex-pats now living across the world who took out PPI before they emigrated.
The mis-selling of PPI is a historic offence which took place at the point of sale so even if the policy holder has since passed away full compensation, including interest, remains payable.
Similarly, if the ex-pat bought the policy while resident in the UK compensation remains due to them also.
The level of other financial complaints has also been changing. Claims about mis-sold current accounts were down by 13% in the second half of 2018, but remained the most complained of product after PPI.
Complaints about credit cards rose by 10% Taking all types of complaint into account, four high street banks headed the complaint list: Barclays, Lloyds, Bank Of Scotland and HSBC.
Barclays total was 412,136 with the other three all receiving more than 300,000 each.
The number of claims dealt with within three days rose from 35% to 37% in the second half of the year.
FCA spokesman Christopher Woolard said: “It is encouraging to see that complaint figures have dropped and firms are dealing with complaints more quickly. We expect firms to continue to focus on ensuring their customers are well served and that they respond quickly where consumers complain.”