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FOS complaints jump by almost a third

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Complaints to the Financial Ombudsman Service for the financial year to date are already 29 per cent higher than the number of complaints received for the full 2011/12 financial year.

Protection, pensions and portfolio management complaints for the year to date have also exceeded the number of complaints received for each product type for the whole of 2011/12.

In its latest issue of Ombudsman News, published today, the FOS reveals it received 180,679 complaints between October and December, taking the total of FOS complaints received in the nine months to December to 341,666. Out of that nine month total, over 70 per cent of complaints are related to payment protection insurance misselling. Some 66 per cent of PPI cases were upheld over the same period.

In 2011/12 the FOS received a total of 264,375 complaints. The FOS says it is now taking on between 8,000 and 10,000 new PPI complaints a week.

There have been 2,166 complaints about term assurance for the year to date, with 13 per cent upheld, up a massive 143 per cent from 890 over the same period last year.

Whole of life policy complaints totalled 1,893, with 24 per cent upheld, an increase of 26 per cent from 1,508 in the same period in 2012.

Complaints about personal pensions rose 18 per cent to 1,537, with 33 per cent upheld, from 1,303.

Portfolio management complaints were up by 24 per cent to 1,173, with 53 per cent upheld, from 946 last year, while complaints about with-profits bonds rose 12 per cent to 584, with 19 per cent upheld, from 522 for the same period last year.

The number of annuities complaints increased by 21 per cent from 363 to 439, while the number of Sipp complaints also rose by 26 per cent from 360 to 455. Some 27 per cent of annuities complaints and 58 per cent of Sipp complaints were upheld.

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Comments

There are 9 comments at the moment, we would love to hear your opinion too.

  1. Rather reflective of the world we live in.

  2. It`s yet another industry leeching off financial services, just like the FSA and MAS.

  3. I wonder how many complaints there would be if a small fee was charged upfront, say £50, repayable if the complaint is successful. Lets face it, the public might aswel complain, what have they to lose. The industry is exposed to a real long term issue if this isnt sorted. And before anyone says this would prevent very poor clients from complaining, I am sure the Claims Chasing Companies would fund this £50, after all they are always confident they & the client are right !

  4. Once a gravy train starts it is very difficult to stop!

  5. Natalie Ceeney states that there is definately no claims culture in this country, however from what I can see she is certainly trying to cultivate one.
    Empire Building!!

  6. Taking all this into consideration. Someone doing proper research into all these claims might come to the conclusion where money is concerned the great British public are a bunch of cheats and liars? Not me of course, but someone might?

  7. It is not surprising when every day in the news papers you see adverts from claims management companies asking consumers to get in touch if they have lost money in pension or investments. The FOS probably have inexperienced staff who have no idea about the way the financial markets work and as such uphold complaints willy nilly.. Until claims management companies are regulated and FOS staff are educated to the same degree as IFA’s then there will be more and more complaints upheld

  8. While no-one wishes reinforcement of a claims culture it would seem that some who are commenting are forgetting that this was triggered by mis-selling and other systemic failures in banking and other parts of the FS industry.

    Perhaps the pendulum is swinging too far on its return, but wasn’t it the industry who pushed it way out on its first excursion?

    Colin

  9. Towards the end of last year, Ombudsman Jim Biles decided a complaint should be investigated over fifteen years after a policy was SURRENDERED, not bought, because the investor was too stupid to realise he had the right to complain until an ambulance chaser came along and told him.

    FOS also seems to allow the ambulance chaser to change its story with impunity.

    At best, FOS is naive and at worst it is a friend of the fraudster.

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