12 September 2008
The Financial Services Authority (FSA) is being urged to crack down on the mis-selling of payment protection insurance (PPI) following a surge in complaints from consumers. PPI is offered to those taking out secured loans and other forms of credit and provides repayment cover in the event of illness, accident or unemployment. But the Financial Ombudsman claims it has seen a large increase in the number of complaints made about the insurance and insists banks are not taking them seriously. "PPI complaints have risen ten-fold in the past two years and are now about 25% of all the complaints we get," a spokesman told the BBC. The body has asked the FSA to take further action on PPI mis-selling and to use its regulatory powers to halt the rise in consumer grievances. Meanwhile, a survey by American Express has revealed that 30% of loan customers would get rid of PPI as a way of reducing their outgoings in the current economic climate.
© 2008 Adfero Ltd
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