The Financial Ombudsman Service upheld 69 per cent of bank complaints in the last year, more than double the 33 per cent upheld against advisers.
Figures obtained from the FOS by Money Marketing show that the uphold rate for life insurance/investment product providers was 36 per cent in 2008/09. The figure was 45 per cent for both fund managers and stockbrokers.
Banks were the cause of 59 per cent of new complaints in 2008/09, life insurance and investment providers 11 per cent, general insurers 13 per cent and general insurance intermediaries 5 per cent. Mortgage intermediaries generated 4 per cent of new complaints and IFAs just 3 per cent.
In his chief ombudsman’s report, Walter Merricks says overall uphold rates for the past eight years have averaged 30-40 per cent. He says: “We would normally expect only a minority of the complaints referred to us to turn out to have been justified, as is the case with independent financial advisers.”
Tower Hill Associates director John Lang says: “Banks want to shoehorn their customers into whatever products they have at their disposal and do not compare the market.”