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FOS investments complaints increase 24%

The Financial Ombudsman Service is predicting there will be a 24 per cent increase in the number of investment and pension complaints over 2012/13, compared to the previous year.

Figures in the FOS’s plan and budget, published yesterday, show the FOS expects to have received 18,400 new investment and pension complaints by the end of the financial year, including mortgage endowments, up from 14,886 in 2011/12.

The number of resolved investment and pension complaints is expected to rise 20 per cent from 14,936 in 2011/12 to 17,800 in 2012/13.

It says stripping out pension and mortgage endowments, investment complaints are likely to increase 20 per cent from 8,172 to 9,800.

The FOS attributes the rise in complaints to continued market volatility, with consumers complaining that what they bought did not match the description given.

Investment Quorum chief executive Lee Robertson says: “There does seem to be a phenomenon of complaints increasing and decreasing in line with the way markets move. Sometimes clients can have a selective memory about what they were told initially when things go wrong at a later stage.”

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Maybe the rise in complaints has something to do with litigation companies promoting their servives and encouraging clients to claim. Most urinal walls in service stations have these advertisements.

    Personal I think they should be placed in the cubicals where they can serve a better purpose.

  2. “There does seem to be a phenomenon of complaints increasing and decreasing in line with the way markets move. Sometimes clients can have a selective memory about what they were told initially when things go wrong at a later stage.”

    Fancy That. You don’t need to be a chief exec to realise that. Anyone who has been in financial services for more than 12 months would have noticed this.

  3. Its not suprising the clients would have selective memories, the adviser probably bored them to death by the time he/she had run through the masses of regulatory documentation, well done FSA you created this monster, the clients and adviser community pay the price.The press coverage of the FSA recent admin blunder demonstrates how unskilled they are with even the most basic of admin functions.

  4. With a “get your free compensation here folks, nothing to lose, money for nothing” rallying call is it any wonder claims are increasing? The FOS must be jumping up and down with joy at seeing these figures? Jobs for life get your chicks for free…..I want my MTV.

  5. I recently had a complaint from my best client.

    He had been contacted out of the blue by one of the bottom feeders. They said he qualified to be paid compensation for the mis-selling of PPI. He explained that he only had investment business and they felt he would be able to get some compensation from the insurance companys and that it would not reflect on the adviser.

    He and I were both alarmed when it turned out they were chasing me and if he did not send back his cooling off letter in time he could be charged hundreds or even thousands of pounds for administration. If they pursued me to the FOS and there was no case to answer, I could also be charged thousands just to defend myself.

    This is a crazy system where we are guilty until proven innocent but still charged for the privellage of clearing our names

  6. As ever, two questions arise:-

    1. Against which sector are the majority of these complaints arising? And

    2. How many are being instigated by claims management piranhas?

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