ombudsman service publishes annual review of personal finance disputes
2 July 2002
Introduction
The Financial Ombudsman Service today published its annual review for the year ended 31 March 2002.
The review includes statistics and commentary from the Financial Ombudsman Service - the organisation that provides consumers with a free, independent service for resolving disputes with financial firms.
During the year, the ombudsman service has:
- Handled almost 400,000 enquiries - including 43,000 new disputes (a 38% annual increase).
- Resolved and closed 39,000 cases (also a 38% increase).
- Dealt with a 60% increase in complaints about mortgage endowments, a 55% increase in complaints about mortgages, and a 19% decrease in motor insurance complaints.
- Resolved 85% of complaints by mediating and recommending settlements - without needing to use formal ombudsman powers to make binding decisions.
- Reduced the cost of handling cases by 9%.
Reviewing the challenges during the year - the year in which the ombudsman service acquired its full statutory powers - chief ombudsman, Walter Merricks, said:
The increase in our productivity is particularly pleasing, because it took place while we were coping with a rapidly rising workload - and at the same time we were introducing our new case-handling system and implementing the new framework of rules under the Financial Services and Markets Act.
notes for editors
- The Financial Ombudsman Service was set up by law under the Financial Services and Markets Act 2000 - to help consumers settle unresolved disputes with their bank, building society, insurance company, investment firm, financial adviser or stockbroker. Complaints covered range from travel insurance and pension plans to mortgages and investments.
- 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.
- Case studies, including commentary and feedback, are now published separately on a monthly basis in ombudsman news.
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