Financial services complaints top 7,300
The Financial Ombudsman said that while there has been a slight decrease of 3% in the complaints made compared to 2010, they still remain “extremely high”. Overall, €1m in compensation was awarded to consumers as a result of the findings of the FSO.
Complaints against insurance companies are the most common, accounting for 47% of the total received and 18% of complaints in that sector related to payment protection and mortgage protection policies.
Of the 3,443 complaints against insurance companies, 1,501 progressed because they were not settled between the parties or withdrawn before the ombudsman examined them. Of those cases that progressed, 166 were upheld, 186 were partially upheld and the rest were not upheld.
Of the 2,630 complaints made against banks, 907 had to be ruled upon by the ombudsman, and of those 141 were upheld, 145 were partially upheld, and the rest were not upheld.
Of all the complaints lodged with the ombudsman about banks, 40% related to mortgages.
In the investment sector, 632 cases were ruled upon, with 190 either fully or partially upheld.
William Prasifka, the ombudsman, said the difficulties of mortgage and related insurance areas are the main reason complaint levels remain so high. “It has been the FSO’s long-stated position to encourage financial institutions to actively engage with consumers when a complaint is raised and try to resolve matters as soon as possible,” he said. “Recent trends indicate that some institutions are taking on board the FSO’s findings and guidelines.
“However, the industry must continue to change its practices in dealing with consumers and make genuine efforts to work with consumers before complaints are referred to the FSO.”
