MP issues advice over PPI claims

The Glenrothes MP Lindsay Roy has expressed serious concern after it was revealed that complaints from constituents to the financial services watchdog soared by more than a third last year.

Figures released by the Financial Ombudsman Service this week reveal that it received 400 complaints from Glenrothes and Central Fife in 2011, a 36% increase on the 295 in 2010.

The rise was mainly due to a huge escalation in complaints about payment protection insurance (PPI) from 187 in 2010 to 291 last year.

Complaints about mortgages more than doubled from five to 11, but grievances about credit card accounts, current accounts and car/motorcycle insurance all fell.

Of the 400 complaints made to Ombudsman last year, 63% were upheld compared with 54% in 2010, with the increase being primarily driven by the big rise in PPI issues.

Mr Roy said: ‘’It is very worrying to see such a big rise in complaints about PPI and shows that people are rightly taking action after being mis-sold policies which in many cases were totally unsuitable for them. If you think you were mis-sold PPI, you should simply approach the bank or financial business that sold the insurance direct and if you don’t get satisfaction you can then complain to the Financial Ombudsman Service for a free and impartial decision.’’