September 15, 2010
Complaints made to the Financial Ombudsman Service (FOS) by disgruntled consumers shot up during the first six months of the year but payouts have steadily declined.
Since January, 84,212 complaints have been filed with the FOS and counting. High street banks and lenders are involved in the majority of issues.
Lloyds Banking Group was the most targeted in 2009, leading the way with 12,750 new complaints made by customers. Barclays was second with the ombudsman receiving 9,215 complaints about the bank, followed by state supported Royal Bank of Scotland at 6,469.
There was also a high level of complaints against credit card firms, with the ombudsman receiving 1,976 complaints about MBNA and 1,662 about Capital One.
In total, the FOS witnessed the number of issues rise by 2,076 in the first half of the year when compared with the previous six months.
However, with many complaints about unauthorised overdraft charges being ruled out, fewer resolved cases ended with compensation for customers. In the first six months of 2010, the FOS upheld 44% of complaints in favour of the consumer, compared with 53% in the second half of 2009.
“The latest set of complaints data shows that some businesses are really committed to ensuring that complaints are handled well, and are used to inform and improve the service they offer their customers,” commented Natalie Ceeney, Chief Executive and Chief Ombudsman for the FOS.
“However, the complaints data also shows there is still more that some businesses need to do to ensure that complaints are properly investigated and fairly resolved. The ombudsman is keen to continue to play its part and help businesses draw lessons from the complaints that we see, so disputes can be sorted out at the earliest opportunity.”
With the news awash with increasing overdraft rates and lending woes, consumers who feel abused by financial institutions are being urged to seek legal advice and consult the FOS promptly.
