You are here: Home - Insurance - News -

Complaints about financial products soar

Written by:
The Financial Ombudsman Service (FOS) has seen a 179% increase in complaints about financial products and services in the first quarter of the 2013/14 financial year.
Complaints about financial products soar

The service received 159,197 new complaints in the three-month period compared with 57,076 in the same period last year, according to figures published today.

Payment Protection Insurance claims again made up the bulk of all complaints with more than 132,000 claims received between April and June this year. This represented 83% of all consumer gripes – up from a comparatively low 56% last year.

Coming in third with 2% of all complaints, mortgages stayed level at about 3,000 complaints referred to the FOS in the period and a similar uphold rate to last year. Over the whole of last year the product attracted about 12,000 referrals, 26% of which were upheld.

However, pensions and guaranteed bonds saw significant drops in their complaints figures.

Personal pensions were complained about 330 times in the period, which marks a significant fall compared with their latest full year statistic of 1,808. What’s more, only 25% of complaints about pensions were upheld in the quarter, their smallest fraction since at least 2010/11, when it was 36%.

Self-invested personal pensions also saw a drop, with 132 complaints – compared with 620 in the whole of last year – and a lower hold-up rate of 55%, compared with 61% last year.

Complaints about guaranteed bonds returned to their 2011/12 level of 88 per quarter, after having spiked last year at 580 complaints. This time round, however, only 20% were upheld, unlike 35% two years ago.

The FOS said its job of adjudicating had been made more difficult by allegations of corrupt complaints such as the Lloyds scandal earlier this year.

The service itself had come under fire from the Association of Professional Financial Advisers which claimed it was handling complaints inconsistently.

Chief ombudsman Natalie Ceeney said the claims and allegations on all sides were “distractions that don’t affect the fundamentals of what the ombudsman is here to do.”

She added: “We take nothing at face value. We’ll continue to challenge bad practice in complaints handling.

“And we’ll continue to focus on the specific facts of each individual complaint – and to approach things problem by problem, case by case.”


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Octopus steps in to buy Shell Energy – what customers need to know

The deal is expected to complete in the fourth quarter of 2023 and will take Octopus Energy’s retail supply ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week