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2 million UK consumers approach ombudsman last year

The service investigated a record 500,000 complaints and ordered payouts to nearly 250,000 consumers in the financial year to April

May 29, 2013 1:08 IST | India Infoline News Service
As many as two million customers in the UK—tired of the poor treatment given by the banks and insurers—took their cases to the Financial Ombudsman in the past year—a rate of one every six seconds.

The service investigated a record 500,000 complaints and ordered payouts to nearly 250,000 consumers in the financial year to April.

Of those complaints taken up by the Ombudsman, 378,699 were about payment protection insurance (PPI).

The high volume of complaints about PPI indicated that banks are failing to clear a backlog which has been piled up over many years.

Banks are struggling to process refunds for millions of consumers mis-sold policies they did not need alongside loans and credit cards.

An Ombudsman settles disputes between banks and customers, and a complaint would reach officials only after being rejected by a bank.

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