Financial complaints have reached an all-time high, according to details revealed by the Financial Ombudsman Service . The service handled a record number of complaints over the past year, particularly due to the increase in disputes over payment protection insurance (PPI).
The ombudsman reported that they resolved 166,321 disputes between consumers and financial services firms during the year to the end of March, a rise of 46 per cent over the previous 12 months. In that time, they handled 925,095 consumer inquiries, amounting to an average of more than 3,500 every working day.
Four of the main financial services groups in the UK were involved in half of all those disputes referred to the ombudsman, and there was a rise of 38 per cent in insurance disputes, as it continued to receive a large volume of complaints about PPI, the scheme that covers debt repayments if the holder is unable to work due to an illness, accident or if they lose their job.
A third of all the new cases referred to the ombudsman were about PPI, of which nearly all involved consumers who thought they had been mis-sold the cover. The number of complaints about PPI rose by 58 per cent on the previous year,
There was also a rise of nearly a third of complaints about banking and credit products, mostly regarding unauthorised overdraft charges . However, complaints about pensions fell by 27 per cent, and complaints about motor insurance also fell by 13 per cent.
Mis-sold Mortgage Claims > Mortgage News
Mis-sold mortgages contribute to financial complaints
Tue, 25 May 2010
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