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UK financial complaints rise

More than 1.8 million complaints were made about the UK financial services industry in the first half of this year, with nearly half of those about insurance products, according to new data released by the Financial Services Authority.

Complaints about “general insurance and pure protection” increased by 18% to 848,357 – a 45% share of the overall number of complaints (which rose by 3%).

The FSA says some of the increased complaint numbers come from the re-opening of cases regarding payment protection insurance (PPI) after the High Court dismissed a claim by the British Bankers Association that the FSA’s policies were unfair.

Complaints about PPI rose by 23% after the banking sector decided to drop its case and re-open disputes over the loan protection product.