Latest News Headlines
Commercial Credit News
|Financial ombudsman annual review media release|
|Thursday, 26 May 2016|
The Financial Ombudsman Service today publishes its annual review of the complaints, trends, facts and figures from the last financial year.
• In the last year 1.6m people got in touch from across the UK to discuss financial problems, from pet insurance to portfolio management. One in five went on to become investigations.
• We resolved 438,802 complaints - with half upheld in the consumer’s favour.
• Complaints involving credit (e.g. hire purchase and point of sale loans) increased by 40%. We were able to resolve most of these within 28 days – and often on the same day.
• PPI remained the most complained-about financial product - and we’re still receiving up to 4,000 PPI cases each week. We’re able to resolve 1 in 5 PPI cases in three months. But the wider impact of the “Plevin” Supreme Court case on PPI commission means that we’ve not been able to resolve some cases as quickly as we would have liked.
• Payday loan complaints have tripled, reflecting people’s growing awareness of their rights when things go wrong - with nine in ten people now saying they know about the financial ombudsman.
Chief ombudsman, Caroline Wayman, commented: “It’s been another year of big numbers and big changes for everyone. But we mustn’t lose sight of the lives and livelihoods behind every complaint we resolve.
“That’s why preventing mistakes of the past from happening again will help restore trust and fairness in financial services. “
statistics from this year’s annual review
• The financial ombudsman has now received over 3 million cases since 2001 – half of them about PPI.
• This year we answered 1,631,955 enquiries from consumers - over 5,000 each working day.
• One in five initial enquiries turned into a formal dispute – a total of 340,899 new complaints.
• We settled 438,802 disputes about all kinds of financial products, from annuities to warranties.
• New packaged bank account complaints more than doubled to 44,244.
• PPI made up just over half of the ombudsman’s workload, 188,712 new cases in total. • New consumer credit complaints increased by 40%, with payday loan complaints tripling (178%), but credit broking complaints fell by half (54%).
• New complaints about personal pension plans are up by almost a quarter (23%), but annuity complaints are stable.
• New specialist insurance complaints rose - with pet insurance and home emergency cover both increasing by more than a third (38% and 37% respectively) and warranty complaints increasing by a fifth (20%).
• 51% of the cases resolved in 2015/16 were in the consumer’s favour.
• Excluding PPI, we resolved two thirds of complaints (66%) within three months.
• We’ve now published 100,000 ombudsman’s decisions on our database
• Four of the UK’s largest banking groups accounted for 56% of all complaints received.
• People from Warrington were the most likely to phone us and consumers from the north east more likely to complain about PPI.
Forums International Ltd
Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.
Find out more here.
The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.
CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.
As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.
Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.
GTS Media Ltd
81 Cambridge Road
Registered in England No: 05483197