Two banks face fines for PPI rejections However, the Financial Ombudsman Service, which takes on complaints rejected by banks, has reported a huge rise in the number of complaints wrongly rejected by banks. It received a total of 266,228 new PPI cases in the first half of the year - a 26pc increase on the figure for the previous six months The Ombudsman upheld more than eight in ten complaints made against some institutions, the data showed, showing that banks routinely fob off legitimate cases. Mr Wheatley called these figures "outrageous" and referred to strong action already taken against Lloyds Banking Group, which was fined £4.3m in February for delaying PPI compensation to 140,000 customers. Further fines against two institutions are now expected. Lloyds appears to be struggling under the weight of complaints. The Ombudsman was deluged with cases against Halifax Bank of Scotland, the state-backed bank owned by Lloyds Banking Group, throughout the first half of 2013. In total, the bank accounted for 61,664 complaints - a 57pc increase on the previous six month period. An investigation by The Times newspaper, published in June, exposed Lloyds for failures in its PPI complaints handling. Mr Wheatley said that it "had not gone unnoticed." In defence, Martin Dodd, head of customer services at Lloyds Banking Group, has said: "The commitment to do a better job for our customers is focused on delivering outstanding customer service.