The number of complaints resolved by the Financial Ombudsman Service (FOS) in the past year has leapt by nearly half, with PPI claims continuing to rise despite huge increases in previous years.
The FOS resolved a record 166,321 disputes during the year, a 46% annual increase, with compensation paid to consumers in 50% of cases. It also dealt with 925,095 consumer enquiries.
PPI, banking and credit complaints continue to rise
The number of insurance disputes increased by 38%, largely due to the rise in complaints about payment protection insurance (PPI). Complaints about banking and credit rose by 30%, although investment complaints stayed at the same level, motor insurance disputes decreased by 13%, and pension complaints fell by 27%.
Responding to the rise in payment protection insurance (PPI) complaints by 58%, Which? Money editor James Daley commented: ‘It’s totally unacceptable that some firms continue to dismiss legitimate complaints out of hand. This could be just the tip of the iceberg as many people give up at the first hurdle rather than going to the Ombudsman. It also reinforces the need for the FSA to push ahead with plans to force firms to review rejected PPI complaints.’
Key complaints statistics from the Financial Ombudsman Service
Statistics from the Ombudsman’s annual review show:
- Payment protection insurance (PPI) accounted for three out of every ten new cases referred to the Ombudsman service.
- Complaints about unsecured loans and financial hardship are rising – but complaints about credit cards and mortgages are levelling off.
- Complaints about consumer credit (including ‘point of sale’ loans, catalogue shopping and credit broking) have more than doubled.
- 75% of adults say they have heard of the Financial Ombudsman Service – with awareness of the Ombudsman highest in Wales and lowest in Northern Ireland.
Use the Which? PPI claim tool to get your money back
Anyone who thinks they have been mis-sold PPI can claim it back quickly and easily using Which?’s free online PPI claim tool. Go to www.which.co.uk/ppiclaim for information on how you may have been mis-sold and to send a complaint to your provider.
For more detail on putting in a complaint, read the free .
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