Compare Annuities  

Get latest annuity rates now

Free Pension Healthcheck  

Get a free online consultation now

PPI, current accounts and credit cards dominate FOS workload

In its latest annual report, the Financial Ombudsman Service (FOS) has revealed that complaints about payment protection insurance (PPI) accounted for some 30% of new cases, in the year to the end of March 2010.

The watchdog dealt with 49,196 PPI complaints, compared with 31,066 over the previous twelve month period and while a small proportion of cases related to PPI claims, the vast majority involved complaints about the sale of PPI.

According to the FOS, a high volume of cases resulted from single premium policies where the cost of insurance is included in the loan, a practice which was banned by the Financial Services Authority last year.

New cases involving current accounts took second place in the FOS workload with a score of 15.5%, followed by credit cards at 11%.

Cases involving disgruntled current account holders numbered 25,252, having almost doubled year-on-year, whereas complaints about credit cards were down slightly, to 18,396.

The FOS observes “we have received a growing number of complaints from consumers who tell us that their current-account problems relate to financial hardship they are experiencing”.

With regard to credit card complaints the report states: “A substantial number of these cases involved disputes relating to section 75 of the Consumer Credit Act 1974 – under which the credit-card provider can be jointly liable with the supplier of the goods or services, if a consumer has a valid claim for misrepresentation or breach of contract.”

In total, the FOS resolved 166,321 disputes in the period covered by the report and consumers were compensated in around 50% of cases.

Comments (0)

There are no comments.

Leave a Reply