The consumer body says the number of complaints received has increased 10-fold on last year’s complaints about the insurance.
Which? says the Ombudsman has now written to the Financial Services Authority about the issue after it noted that a significant proportion of complaints that were being upheld, made it think there was “widespread consumer detriment”.
Which? Money editor Martyn Hocking says: “After years of campaigning by Which? it’s good to see other organisations such as the Competition Commission, Office of Fair Trading and the FSA are voicing their concerns.
“Although the FOS was set up to deal with individual complaints it makes sense that if so many consumers are complaining about the same issue that they take this up as a collective compliant and force companies to treat their customers fairly.”