The Financial Ombudsman Service handled the equivalent of 3500 consumer enquiries a day resolving over 166,000 disputes between consumers and regulated companies selling financial service products. This was an increase of 46 per cent over the previous 12 months. Half of the disputes made were related to the four largest financial services groups in the UK.
Payment protection insurance (PPI) taken out by consumers, have resulted in complaints for mis-sold policies rising by 38per cent during the year. These claims accounted for 30% of the total number of complaints, This has caused a significant increase in the Financial Ombudsman Services workload as the complaints continue to rise. This insurance is taken out to cover loan repayments if policy holders loose their jobs, are ill or have an accident preventing them from working.
Complaints relating to credit and banking products also increased by 30 per cent, this was linked to financial difficulties following the economic downturn. Consumer awareness has also attributed to the rise in complaints, they are able to seek advice on claims direct from companies regulated by the Ministry of Justice for any financial product they are concerned may have been mis-sold.
Mis-sold Mortgage Claims > Mortgage News
Mis-sold products see increase in complaints to Financial Ombudsman Service
Thu, 20 May 2010
| Mortgage Fraud Rises for Fifth Consecutive Year - Wed, 16 May 2012 |
| Homebuyers Avoid Mortgage Protection due to PPI Scandal - Fri, 11 May 2012 |
| Lenders No Longer Going Ahead with Mortgage Fraud Squad Plan - Wed, 09 May 2012 |
| More News |