07:52 04 September 2013
The number of people filing PPI claims has been steadily increasing and even reaching a new record high. Based on figures, there were about 266,228 complaints made in the first half of 2013. 86per cent of all new complaints, where the banks failed to reach an agreement with their customers, ended with the Ombudsman.
PPI or Payment Protection Insurance is a financial product designed to help borrowers repay their loans if they lose jobs or if their income drops. Although some people actually benefited from this type of insurance, there are thousands of people who were charged for it even though they did not know that it was included in the loan that they took out and even though they were not even eligible for it in the first place.
Although banks and other financial institutions were ordered to process the claims, a lot of customers are facing unnecessary delays in receiving payouts.
Natalie Ceeney, the chief ombudsman, said: "Disappointingly we are still seeing cases where businesses are not following our long-standing approach to PPI, resulting in long waits and unnecessary delays for consumers.”
"But, more positively, we are seeing encouraging signs from some major businesses that are starting to recognise the value of getting things right for their customers - with an increased focus on sorting out problems and concerns as quickly as possible."