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More than 800 complaints a day about Payment Protection Insurance

The Financial Ombudsman Service, which helps resolve complaints consumers have with their banks, was inundated in the first six months of this year, receiving 150,000 new complaints – a rise of 54 percent than in the previous half year.

Almost two-thirds of the complaints can be attributed to Payment Protection Insurance (PPI), which is an insurance that is sold with loans and credit cards. Its purpose is to provide a life-line when borrowers can not make repayments.

The UK's banking big boys have been fighting tooth and nail over whether they must compensate customers who have been sold this insurance inappropriately. The case ending in April, banks have had to refund borrowers who were missold the insurance to the tune of millions of pounds.

Complaints against banks are on the rise generally, with Natwest reporting a sharp hike in complaints during the first part of this year. It received 147,109 grievances, which compares with 84,109 from the previous year. Meanwhile RBS reported a 79 percent increase in complaints during the first part of this year, compared with the same period last year. A large proportion of those complaints were over PPI.

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