Too many complaints wrongly dismissed, says Which?
27 May 2009
As the Financial Ombudsman Service (FOS) publishes its annual report, Which? personal finance campaigns manager, Doug Taylor, says:
“It’s shameful that some firms are dismissing so many justified complaints that are upheld. This could be just the tip of the iceberg as many people give up at the first hurdle rather than going to the Ombudsman. Companies have a duty to treat their customers fairly and this means giving all complaints due consideration and, if appropriate, accepting them.”
“The increases in complaints about Payment Protection Insurance, credit cards and mortgages reflect the ongoing concerns we have about how companies are treating consumers who take out these products, whether through mis-selling or excessive rates and charges.”
Notes to Editor
The annual FOS report shows:
- A significant increase in the rate at which complaints are upheld. In previous years it had been between 30 and 40 per cent. It has increased to 57 per cent
- A record 127,471 new complaints were dealt with
- 113,949 disputes were resolved, which is an annual increase 14 per cent, 57 per cent of cases resulting in compensation for consumers
- A threefold increase in complaints regarding PPI, mainly involving disputes about the way the policy was sold. 89% of PPI complaints are upheld in favour of the consumer
- The number of complaints about mortgages, credit cards and consumer credit rose by 34 per cent, and insurance disputes increase by 84 per cent
- Despite existing protocols and guidance, there are still cases of mortgage lenders not treating borrowers in arrears fairly. Arrears fees were applied incorrectly or had been charged for work that had not been done
- Complaints about credit cards included those concerning default charges and companies making substantial increases in rates of interest charged
- A significant rise in complaints about administrative delays in relation to Cash ISA’s