FOS sees 26% rise in new cases with PPI dominant
The Financial Ombudsman Service (FOS) handled over a million front-line enquiries and complaints from consumers in the 2010/11 financial year, of which 206,121 developed into new cases.
The figure is up 26% year-on-year, with over 50% of new cases relating to the sale of payment protection insurance, representing the highest number ever received in a year about a single financial product.
Across other insurance sectors complaints both rose and fell, with complaints about travel and motor insurance up and complaints about health and home contents insurance down.
The watchdog’s latest report also notes that consumers continued to complain about the make-up and description of investment funds.
In particular, that the description of some funds as “cautious” failed to reflect the real risks involved and that the use of the word “cash” as a description of a fund implied a safe deposit.
The ombudsman’s involvement resulted in compensation for consumers in 51% of new cases during 2010/11 and chief ombudsman, Natalie Ceeney, confirms that the Service has seen “encouraging signs of improvements” in the way that some businesses are handling complaints.
Category: Financial Services Ombudsman, Insurance News
Visited 1300 times, 1 so far today
Comments (0)
Trackback URL | Comments RSS Feed
There are no comments yet. Why not be the first to speak your mind.