PPI complaints still rising - FT.com Complaints about financial companies have risen to a record high as the aftermath of payment protection insurance (PPI) mis-selling continues to weigh on the industry. Data from the Financial Ombudsman Service said new complaints in the six months to June rose by 15 per cent to 327,035 compared with the June-December 2012 period. IN Savings The main factor was a 26 per cent increase in complaints about PPI, where borrowers were sold loan insurance which they often did not need or could not claim on. Complaints about PPI made up more than eight in 10 of those received by the ombudsman, with new PPI complaints hitting 266,228. Although banks have set aside billions for compensation payments, the ombudsman said some lenders continue to drag their heels on repaying mis-sold PPI. Natalie Ceeney, chief executive of FOS, said: "Disappointingly, we are still seeing cases where businesses are not following our longstanding approach to PPI, resulting in long waits and unnecessary delays for consumers." But we are seeing encouraging signs from some major businesses that are starting to recognise the value of getting things right for their customers - with an increased focus on sorting out problems and concerns as quickly as possible. Excluding PPI, complaints dropped 15 per cent to 60,807 on the prior six months, including a 22 per cent fall in banking complaints. Complaints about Lloyds Banking Group, the UK market leader with 22m current account customers, were almost five times higher than a year earlier, at 129,293. They also rose 38 per cent on the prior six months, making the part-nationalised lender the most complained-about group. Lloyds was fined £4.3m in February by the Financial Services Authority for delaying PPI compensation to 140,000 customers. However, Lloyds said its own figures, published last month, showed a 36 per cent reduction in the total number of complaints received during the first half, to 548,403. That included a 30 per cent fall in banking complaints and a 39 per cent decrease in PPI complaints. Its figures were based on comparisons with the same period a year ago. It added that on a like-for-like basis, Halifax now receives fewer complaints than any other major bank or building society. The figures come ahead of a new initiative that allows customers to move current accounts more easily. From September 16, moving a current account should take no more than seven days, with the receiving bank assuming all responsibility for direct debits and standing orders. The move is designed to increase competition in the current account market and force banks to improve service. Lloyds faces further customer service challenges because of an EU requirement to sell off over 700 branches, servicing 4.6m customers, from its core estate. These branches were to be sold to the Co-operative Bank, but following the collapse of that deal, will be rebranded TSB.