The Independent Financial Ombudsman Service (IFOS) have revealed record numbers of complaints against banks and insurers were made last year as a consumer fight-back against mis-selling of loan insurance and in-store credit was staged.
The service resolved 166,321 disputes, up 46% on the previous 12 months, the latest figures revealed. Complaints against banks and insurers were made in an estimated half of those cases.
The consumer fight-back is expected to heighten further this year, with the Ombudsman expecting more than 200,000 complaints. The main blame has been laid at the banking crisis, which has left thousands of homeowners struggling with debts and subsequently creating a flood of enquiries to the Ombudsman. It’s estimated 3,500 enquiries are being dealt with a day.
Throughout the past 12 months, insurance disputes have increased by 38% whilst banking and credit challenges by 30%. Issues with investments have remained steady and motor insurance complaints have decreased.
“The Ombudsman is an impartial middle-man that gives consumers a fair chance to resolve complaints about financial services firms”, says Natalie Ceeney, the chief executive and chief Ombudsman.
“There is still plenty of room for improvement for firms. We still get plenty of complaints that should have been resolved before they ever reach us. I am a great believer in people having access to information. It’s why I believe that publishing data showing the firms we receive more complaints about is absolutely vital”.
The IFOS are bracing themselves for a flurry of complaints from travellers and holiday-makers who had their trips disrupted by the volcanic ash cloud. Already, one in three complaints received is about payment protection insurance. A plan is currently being drawn up by the lead Ombudsman to deal with the expected surge in two months time.
The recent economic turmoil in Greece, which has cast uncertainty over the safety of money tied up foreign banks, is sure to add to the increase in enquires to the IFOS.