The UK’s Financial Ombudsman Service received 159,197 complaints in the three months to June 30, up 179% on the corresponding period last year.

Most (83%) related to payment protection insurance (PPI), with 2000 new complaints every day during the quarter.

About 78% of PPI complaints were upheld in consumers’ favour.

The results come after a newspaper investigation alleged staff at Lloyds TSB were delaying and rejecting PPI compensation claims in the hope they would be abandoned.

“I had thought things could only get better, and it’s really unhelpful to have another damaging episode like this [news report],” Chief Ombudsman Natalie Ceeney said.

“The job of resolving many thousands of complaints can only be more difficult when there is an atmosphere of universal suspicion and distrust.”

Motor insurance was the subject of 1708 complaints, with 40% upheld; buildings insurance 1038 (46% upheld); term assurance 777 (12% upheld); travel insurance 531 (53% upheld); whole-of-life policies 499 (21% upheld); contents insurance 431 (43% upheld); income protection 362 (28% upheld); critical illness insurance 274 (20% upheld); private medical and dental insurance 259 (38% upheld) and card protection insurance 247 (76% upheld).