Bank claims go up by 54%
During the first six months of 2011, the ombudsman service received a total of 149,925 new complaints against financial businesses. This reveals an increase of 54% compared to the second half of 2010.
The Financial Ombudsman Service (FOS), an institution dealing with financial problems between consumers and financial businesses, has released new figures publishing complaints data covering over the period 1 January to 30 June 2010.
The data includes complaints data relating to individual financial businesses – including banks, insurance companies and investment firms.
During that time, almost 150,000 new complaints were received, an average of about 820 per day. Compared to the 97,237 complaints received in the last half year 2010, the 2011 6-months period experienced an overall rise of 54%.
The number of new complaints about each of these individual businesses ranged from 30 to 19,569, with five financial businesses each having more than 10,000 complaints which together accounted for 72,026 cases in total, says the FOS.
Increase in PPI claims
In that time, disputes about payment protection insurance (PPI) accounted for nearly two-thirds of the new cases with 98,632. A majority of 93% of the total number of PPI cases involved 157 financial businesses - out of more than 100,000 businesses covered by the ombudsman.
“These latest figures show a significant increase in the number of new PPI complaints referred to the ombudsman during the first half of 2011,” Natalie Ceeney, chief executive and chief ombudsman.
“This period coincided with the time when most of the high street banks and some other financial businesses had put PPI complaints on hold, because of their legal challenge against the ombudsman service and FSA.”
As a result, Ceeney said that complaints in this period about PPI were harder fought and to resolve.
Regarding financial complaints, the more knowledge you have about the different financial products –such as bank accounts, loans, credit cards, PPI, or pre-paid cards- the less likely it will be for you to experience unpleasant surprises.