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Complaints against financial firms rise 21%

The total number of complaints received by financial firms increased by 21 per cent in the second half of 2011 to 2,256,172.

The FSA’s latest complaints data, published today, shows the increase was due to a rise in complaints about general insurance and pure protection products, up 49 per cent to 1,280,940.

This is largely due to a rise in payment protection insurance, which increased 85 per cent to 977,510 in the six months to December 31.

Complaints about “advising, selling and arranging”, which includes IFAs firms, increased by 69 per cent to 1,093,684, however 92 per cent of these complaints were about general insurance and pure protection products.

The number of complaints to banks and building societies increased by 29 per cent to 1,660,578, however the number of complaints to banks fell 13 per cent to 787,096, the lowest level since the second half of 2006.

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Comments

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  1. Philip Williams 29th March 2012 at 11:00 am

    Headline figures are good but do not really help. Nothing here mentions IFA’s and their proportion of complaints.

    According to FSA figures there are 5,237 Personal Investment Firms, of which IFA’s are a part, and they generated 27,792 complaints with redress paid of £26,694,384. This is 5.3 complaints per firm with £960 paid per complaint.

    There are 303 Banks generating 1,660,578 complaints with redress of £2,029,765,913. I make that 5,480 complaints per Bank with an average settlement of £1,222.

    Speaks for itself really…

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