According to the latest data released by the Financial Ombudsman Service, complaints have risen by an astounding 24% in the third quarter of 2011. Although payment protection insurance claims are falling, other sectors of the financial industry have seen a dramatic surge in the number of incoming complaints.
At the moment the biggest concern is in overdrafts, motor insurance and in the savings and mortgages sectors of the financial industry. Amazingly, PPI claims are growing fewer even though 92% of previous claims were awarded in favour of the consumer by the FOS.
In addition to the complaints coming in from the financial industry, a large number of complaints have been emerging in regards to home energy cover and how it is being mis sold. The complaints allege that consumers have signed up for what they are told is a free trial and after the trial period ends they are hit with an automatically renewing charge.
Home energy cover enquiries numbered 1,368 in the first half of 2011 whilst they tallied up to 803 helpline enquiries in the third quarter. This pattern shows that complaints are significantly on the rise and the FOS is making note of this increase.
As well, it is reported that Barclays had the greatest amount of complaints amongst banks according to the FSA which numbered 251,563. Other UK banks had far fewer complaints with Lloyds TSB receiving 181,907 complaints, Santander at 168,888 and Nat West with only 147,109.
Complaints are soaring which is further adding to the woes of the already overburdened Financial Ombudsman Service who are still trying to work their way clear of the backlog of PPI claims they were slammed with. These new complaints, although in different areas, may be months, if not years being resolved.
