The Financial Ombudsman Service is reporting a rise in Isa complaints around short-lived introductory offers and varying interest rates.
In the latest issue of Ombudsman News, published today, the FOS says Isa complaints increase towards the end of the financial year in April as firms promote their Isa products and consumers rush to take up their annual allowance.
It states: “As well as continuing to see complaints about administrative issues, we have started seeing more complaints about introductory offers on Isas. These often involve Isas where the interest rate is fixed for a certain period, and then changes to a lower rate.
“In many of these cases, the consumer says they hadn’t realised that the interest rate would change – and that they had only become aware of it once the interest rate had fallen.”
FOS is also seeing a rise in complaints for fixed rate cash Isas where the provider has withdrawn the product from the market and the Isa is closed to more money being paid in.