Further restrictions could be brought in for PPI

According to a recent report PPI sales could be subject for further restrictions following action by the Financial Ombudsman Service, which claims that the level of complaints relating to payment protection insurance has rocketed. The FOS has now called upon regulators to take action with regards to further clamping down on PPI.

Officials from the FOS have said that they are concerned that banks are fobbing off consumers that complain. The FOS has now asked the Financial Services Authority to intervene and take action over problems with PPI. An official from the FOS said: “PPI complaints have risen 10-fold in the past two years, and are now about 25% of all the complaints we get.”

Figures show that around five hundred complaints a week relating to PPI are flooding into the FOS. This type of cover, which is sold alongside various forms of credit such as loans and credit cards, has been described by officials as little more than a protection racket.

However, officials from the British Banker’s Association said: “The financial services industry agrees that it is in the interests of customers to deal quickly and consistently with genuine complaints. But we do not agree that a regulatory response is needed to achieve this. Presently, the industry is actively working to determine the best way to handle PPI complaints across all providers consistently and efficiently.”