Rise in number of complaints to Financial Services Ombudsman

The number of complaints made about financial institutions to the Financial Services Ombudsman is rising.

According to the Ombudsman's latest report, 3,800 complaints were received in 2006 - an increase of 14%on 2005.

Most of the complaints related to car and travel insurance, life assurance, bank accounts, mortgages and credit cards.

Three out of five cases were resolved in favour of those making the complaints.

The compensation awards ranged up to €7.4m which the Ombudsman said Ulster Bank should pay customers who had invested in its international share portfolio although this is currently under appeal by the bank.

Ombudsman Joe Meade in his report is again expressing concerns about the inappropriate investment advice given to elderly people and instances where unnecessary mortgage protection policies may have been taken out.