By Marcus Leach
The Financial Services Authority (FSA) has said that complaints against banks have risen by 59%, largely down to complaints about payment protection insurance (PPI).
The number of complaints, compared with the second half of 2011, had risen by 3.58 million, implying financial institutions faced an average of 19,550 complaints a day.
However, those figures were slightly distorted by the ever increasing number of PPI complaints, which accounted for 62% of the total figure.
Payment protection insurance is supposed to cover borrowers' loan repayments if they fall ill, die, or lose their jobs. However, there has been major mis-selling of the insurance, leading to new rules on how cases should be dealt with.
Not only that but the high number of cases has seen banks set aside large sums of money to cover damages, and in certain cases specialised departments have been set up to deal specifically with these cases.
About two-thirds of all PPI complaints have been upheld, the FSA figures show.
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