The Financial Ombudsman Service (FOS) resolved a record 166,321 disputes during the 2009/10 financial year, with PPI accounting for 30% of all new cases.
In its annual review FOS revealed that there was an increase in new cases of 46%, resulting in compensation for consumers in 50% of cases. This equated to 925,095 consumer enquiries – over 3,500 each working day.
The number of insurance disputes increased by 38% (largely due to the rise in complaints about payment protection insurance), and complaints about banking and credit rose by 30%. However, investment complaints stayed at the same level, motor insurance disputes decreased by 13%, and pension complaints fell by 27%.
Complaints about unsecured loans and financial hardship increased, but complaints about credit cards and mortgages levelling off.
The proportion of complaints referred to the ombudsman service by claims-management companies on behalf of consumers continued to increase – from 26% to 28% of all cases. Two-thirds of cases referred by claims management companies to the ombudsman service related to payment protection insurance.
Natalie Ceeney, newly-appointed chief executive and chief ombudsman, said: “This month marks the tenth anniversary of the Financial Ombudsman Service. Ten years ago the ombudsman was set up by law to settle 25
