The legacy of payment protection insurance lives on, as the latest complaints data from the Financial Conduct Authority shows that the number of new complaints received by authorised firms rose by 40% between the first half and the second half of 2019 – there were 4.29 million complaints between January and June and 6.02 million between July and December. This increase was almost entirely due to the PPI complaints deadline of August 29 2019 and the consequent massive rise in complaints in the preceding days and weeks.
PPI complaints rose by 75% from 2.12 million in H1 2019 to 3.71 million in H2 2019, and PPI made up 62% of all complaints in the second half. In this respect, it was well ahead of the three next highest areas: current accounts (which made up 10% of all complaints), credit cards (6%) and other general insurance products (5%).
Complaints about products other than PPI rose by just 6% between the two six-month periods, from 2.18 million to 2.31 million.
3,253 firms reported receiving one or more complaint during the period from July to December, which is slightly higher than the equivalent figure of 3,179 in the first half of the year, but still means that around 94% of FCA-regulated firms typically receive no complaints during a six-month period.
There were so many PPI complaints at some of the largest firms in the lead up to the deadline that it became impossible for all of the investigations to be completed within the usual eight-week timescale, so the overall proportion of complaints closed by firms within eight weeks fell from 76% in H1 2019 to 56% in H2 2019. The percentage of non-PPI complaints closed within eight weeks actually increased, from 94% in H1 to 96% in H2, and in the majority of cases, a non-PPI complaint is closed within three days – this applied to 56% of H1 cases and 55% of H2 cases.
The uphold rate for PPI complaints between July and December was 50%, slightly lower than the 54% figure for January to June. At 57% in H1 and 56% in H2, these figures are not massively different for non-PPI complaints.
The amount of PPI redress paid increased from just over £2 billion in H1 2019 to just under £2.4bn in H2 2019. Excluding PPI, total redress decreased from £284 million in H1 2019 to £263 million in H2 2019.
Average redress for a PPI case was £1,890 in H1 and £1,942 in H2, while for all other products average compensation tends to be much lower, at £200 in H1 and £184 in H2.
The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware the facts, circumstances or legal position may change after publication of the article