17Apr

The latest data from the Financial Ombudsman Service (FOS) on the complaints received by individual firms shows that, as the claims deadline approaches, some firms are still fighting to resolve large numbers of payment protection insurance (PPI) complaints.

In the second half of 2018, Bank of Scotland customers referred 15,705 PPI complaints to FOS, and the third highest figure for this product was the 11,606 PPI complaints for Lloyds Bank, which is part of the same group as Bank of Scotland. In second place is Financial Insurance Company Limited (FICL) with 13,809 new PPI complaints. FICL was acquired by insurance giant AXA 2018, and the insurer is in dispute with former FICL parent company Genworth over exactly how much of the legacy PPI costs should be borne by the former owner.

Other high street banks seem to have made more progress in resolving PPI issues, as the FOS received less than 2,000 new PPI complaints about Royal Bank of Scotland and NatWest during the six-month period. The figure for Clydesdale Bank was as low as 277.

In the banking and credit category, the highest number of new complaints was the 5,717 received about payday lending group Cash Euronet, ahead of TSB in second place on 5,547. Barclays, Lloyds Bank and NatWest all had more than 3,000 cases in this category, as did another short-term lending company called Gain Credit.

When we look at complaints about general insurance (excluding PPI), the only firms with more than 1,000 new cases at FOS are UK Insurance – which underwrites on behalf of many well-known insurance brands – and Aviva.

In the investment category, Barclays is well ahead on 324 new complaints, with the next highest being Cofunds on 153. Most of the other places in the top 10 in this category are occupied by high street banks.

In the life & pensions category, Aviva’s 381 new cases is well ahead of second-placed Prudential, which had 210.

When we look at the cases resolved by the FOS in the same period, the average uphold rate was 28%. However, TSB has an overall uphold rate of 89%, and many of the short-term lending firms had around 60% of their cases decided in favour of the customer.

Specifically, in the banking and credit category, TSB’s figure rose to 90%, again followed by some of the payday lenders at around 60%.

The overall PPI uphold rate has fallen to 20%, however some firms still had high uphold rates, including credit provider NewDay (65%) and lender ShopDirect (63%).

The average uphold rate for investments was 35%, but Cofunds scored 63%, Interactive Investor Services 61% and Barclays 52%.

The average uphold rate for life and pensions was 24%, but Barclays had 66% of its complaints in this category upheld, well ahead of second-placed Aviva on 30%.

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