Financial Ombudsman reports record number of complaints
Complaints to financial institutions rose to the highest recorded level over the course of the last year, after a 92pc rise on the previous year. The Financial Ombudsman Service (FOS) reported that claims for the mis-selling of payment protection insurance (PPI) accounted for the vast majority of the complaints, a total of 74pc.
However there were rises in complaints in most areas, and more recently there have been question marks raised over the selling of some interest-only mortgages.
The rise in complaints has been attributed to increased consumer awareness, particularly regarding PPI, which has been widely mis-sold with loans. However there are still many consumers using intermediary companies to make a claim, who will ultimately take a cut of any compensation issued in the event of a successful claim.
Using the FOS is free, and over the course of the last year, 49pc of all clams issued through the were upheld in the consumers favour, so it is certainly worth issuing a complaint of you feel you have been mistreated.
The main offenders from this period were some of the biggest banks in the UK, with 62pc of the complaints issued regarding Lloyds, Barclays, HSBC or Royal Bank of Scotland. And the FOS has criticised these and other institutions, who it feels are not doing enough to settle complaints with the consumer themselves.
Natalie Ceeney, Chief Financial Ombudsman said: “We have seen a much stronger consumer voice in the last year, with people becoming more aware of their rights and less willing to put up with poor customer service.
“As levels of confidence in financial services have eroded, it is disappointing that we still have not seen any improvement in complaints handling. Too many financial businesses seem to be unable to sort out problems themselves, with the ombudsman having to get involved”.
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