Complaints about payday loans and packaged bank accounts have skyrocketed over the last year, but not by enough to knock PPI off its perch as the most complained about financial product.

Stats released by the Financial Ombudsman Service (FOS) today reveal that 1.6 million people contacted it between 1 April 2015 and 31 March 2016 to discuss a range of financial problems.

Of those complaints, one in five was taken on as an investigation and 438,802 were resolved (with half upheld in the consumer's favour).

While PPI complaints dipped by 8% on the previous year's figures to 188,712, PPI nevertheless maintained its position at the top of the most complained about list for 2015/16, with the FOS inundated with up to 4,000 PPI cases each week – a stat which raises question marks over proposals to introduce a 2018 deadline for PPI complaints.

We're currently awaiting results of a Financial Conduct Authority consultation paper on a potential PPI claims time-bar, something MoneySavingExpert.com branded "a gross injustice" in our submission to the November 2015 consultation.

For how to reclaim mis-sold PPI for free, check out our guide.

Martin Lewis
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Other financial product complaints gaining ground on PPI

New packaged bank account complaints more than doubled to 44,244 from 21,348 at the end of March 2015, while complaints about current accounts in general saw a 66% spike to 58,724, from 35,344 – representing the second most complained about financial product behind PPI.

Payday loan complaints have almost tripled in the course of 12 months, from 1,157 to 3,216.

Complaints involving credit (such as point of sale loans – those arranged through, and paid directly to, the supplier of the goods – and hire purchase) have shot up by 40%. However, the FOS says it's been able to resolve most of these complaints within 28 days.

Elsewhere, new complaints about personal pension plans rose by 23% to 1,985 from 1,618 the previous year, while new specialist insurance complaints about pet and emergency home cover increased by 38% and 37% respectively.

Warranty complaints went up 20% to 934 from 777.

Payday loans and packaged bank accounts climb complaints league – but PPI remains top by a distance
PPI still way out in front of the FOS complaints league

'Preventing mistakes of the past' key to restoring faith in financial services

In the past five years, the FOS has received more than three million complaints and half of them have been about PPI. But it would appear we're heading in the right direction, as there were approximately 100,000 fewer complaints lodged in 2015/16 than during the previous 12 months.

Chief ombudsman Caroline Wayman says: "It's been another year of big numbers and big changes for everyone. But we mustn't lose sight of the lives and livelihoods behind every compliant we resolve.

"That's why preventing mistakes of the past from happening again will help restore trust and fairness in financial services."

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