ombudsman service publishes annual review of personal finance disputes
29 June 2004
The Financial Ombudsman Service - the organisation that resolves disputes between consumers and financial firms - today publishes its annual review for 2003/04. The review shows that during the year the ombudsman service:
- Received over half a million front-line enquiries and 98,000 new complaints - an increase of 57% on the previous year.
- Dealt with a near four-fold rise in mortgage endowment complaints (51,917 cases compared with 13,570 in the previous year) - half of our overall workload.
- Resolved 92% of complaints by mediating and recommending settlements - without needing to use formal ombudsman powers to make binding decisions.
- Took part in over 650 consumer and industry events around the country - including roadshows and conferences, workshops and exhibitions.
Commenting on the significant increase in workload faced by the ombudsman service, chief ombudsman, Walter Merricks, said:
This has been a year of dealing with big numbers and big operational challenges. Major surges in complaints have been driven by publicity about - and increased awareness of - mortgage endowment mis-selling, "splits" and "precipice bonds".
Before the volume of complaints stabilises, we may see the number of mortgage endowment cases rise again - as consumers respond to specific warnings about imminent deadlines for complaining.
With more people than ever using the ombudsman service, it may be worth stressing our fundamental purpose. We are not a regulator, nor a trade body, nor a consumer champion. The value we contribute to the financial services industry and its customers lies, I believe, in our distinct role as a dispute resolution service - specialising in settling individual complaints fairly, impartially and independently.
notes for editors
The Financial Ombudsman Service was set up by law to help consumers settle unresolved disputes with banks, building societies, insurance companies, investment firms, financial advisers, credit unions and stockbrokers. Complaints covered by the ombudsman service range from travel insurance and pension plans to mortgages and savings accounts.
The Financial Ombudsman Service can step in to help resolve disputes where the consumer has already complained to the financial firm and remains dissatisfied. Consumers with an unresolved complaint can get in touch with the Financial Ombudsman Service on 0845 080 1800.
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