PPI still the most complained about product, says Ombudsman

The latest report from the Financial Ombudsman has revealed that payment protection insurance remains the most complained about financial product, while complaints about packaged accounts and payday loans have surged.

In the year to the end of March, the Ombudsman received 1.6m enquiries, or 5,000 a day. It took on one in five of these as a new case for a more detailed investigation – a total of 340,899 new complaints, up 3.5% on the year before.

The Ombudsman resolved 438,802 complaints. Excluding PPI, it resolved two thirds of complaints within three months.

56% of new complaints were about the sale of payment protection insurance, with 188,712 complaints overall, or around 4,000 a week.

Complaints about packaged bank accounts jumped 107% on the year to 44,244 and complaints about unscrupulous payday loans companies rocketed 178% to 3,216.

A packaged bank account comes at a monthly cost and normally includes a range of insurance and non-insurance benefits. A typical account might include mobile phone insurance, car breakdown cover and travel insurance.

Chief ombudsman, Caroline Wayman, said: "It's been another year of big numbers and big changes for everyone. But we mustn't lose sight of the lives and livelihoods behind every complaint we resolve.

"That's why preventing mistakes of the past from happening again will help restore trust and fairness in financial services."