Loan Articles

According to a recent report the level of complaints being submitted with regards to loan insurance cover has been rising, and eight hundred complaints each week have been pouring in from consumers with regards to this type of controversial cover. The data has come from the Financial Ombudsman Service.

The FOS has also said that the number of loan insurance related complaints that is now being upheld is unprecedented, but it is thought that the level of complaints will now subside as a result of sweeping reforms that will see the sale of single premium payment protection insurance being stopped from the end of May.

In many cases PPI has been sold to those that are not eligible to claim or did not even want to take out the cover, which can be quite costly. An official from the FOS said: “It is still the single biggest source of complaint, amounting to about a third of the total. We are upholding about 90% of the cases we deal with, and with one firm 100% of the cases.”

The FOS added: “We are upholding an unprecedented number of consumer complaints about PPI. We have reported our concerns about some firms who seem to be systemically and deliberately mis-handling complaints.”