Financial complaints soar into their millions

Recent figures that were released have shown that consumer complaints relating to financial services have soared into their millions over the past few years, with data showing that between 2006 and 2008 more than nine million separate complaints were made to financial firms in the UK.

More than half of the complaints that were made to financial firms during that two year period related to banking and loans. The figures were published for the first time recently by the Financial Services Authority.

The figures also showed that around 40 percent of these complaints were being settled in favour of the consumer during the second half of last year.

Many different factors led to these complaints being made, and some of the issues about which consumers were complaining included overdraft charges by banks, mortgage endowments, and the controversial issue of payment protection insurance, or PPI, being mis-sold to them.

An official from the FSA said that by publishing the results it provided more clarity over the level of complaints that were being made in this sector and gave more information with regards to how these complaints were dealt with by the financial services industry. He said: “Publishing this information will mean that consumers and firms can now see how many complaints the industry receives and how it deals with them.”

The FSA also said: “The spike in the total number of complaints in the first half of 2007 is the result of a large increase in complaints about overcharging and poor customer service in relation to banking and loans products at that time.”

An official from consumer campaign group Which? added: “It’s a poor reflection on the industry that there are so many unhappy customers out there. Financial firms simply aren’t treating consumers well enough and things must change if the industry is to rebuild its reputation.”

Tags: United Kingdom, fsa, Business Finance, mortgage endowments, Complaint