Sharp increase in mortgage complaints

COMPLAINTS about mortgages to the Financial Services Ombudsman increased significantly in the second half of last year.

Ombudsman Bill Prasifka revealed figures yesterday that showed his office received 7,230 complaints last year that resulted in the payment of €2.6 million in compensation.

The office received 348 complaints on mortgages in the second half of last year, up 41% on the first half of the year.

The overall level of complaints is down slightly on 2009, but it is up significantly on the 3,795 received in 2006.

The office paid almost €619,000 in compensation on banking and €474,301 on insurance complaints last year. It said €1.5m was paid on investment complaints.

Just 65% of complaints advanced to full investigation, with 74% not upheld and 1% going to a mediation process. The figures show that 25% were upheld or partly upheld.

The number of travel insurance complaints also increased in the second half of last year by almost 10% to 178. The number of investment complaints fell 18% to 505.

Mr Prasifka has said that banks and other financial institutions are still not dealing properly with customer complaints. He also said that his office were having discussions with the Department of Finance to reveal the names of institutions complained about.

He was speaking yesterday at UCC in a presentation to the Association of Compliance Officers in Ireland and the Financial Services Innovation Centre.