Financial services complaints increase 5.7%

07/09/2009

Complaints about banks, lenders, pensions companies and insurance providers increased by 5.7 per cent between 2006 and 2008, according to new figures published by the Financial Services Authority (FSA).

The watchdog said that between the second half of 2006 and the first half of 2007, there was a spike in the number of consumers complaining about banking and loans (up 122 per cent) and issues relating to overcharging or poor customer service (up 259 per cent).

Over the period covered by the data, the speed that complaints were dealt with by financial firms remained stable - at the end of 2008, around ten per cent of customer issues took more than eight weeks to resolve, with 40 per cent of complaints resolved in customers' favour.

Consumer group Which? said the "dramatic rises" in complaints against banks was a "poor reflection" on the industry.

In a statement, the organisation commented: "Consumers need more information about which firms are being complained about and why, so they can make more informed choices when shopping around for financial products."

The FSA will publish the complaints data covering the first half of 2009 next month.

EuroDebt director Kevin Still said: "With over 870,000 complaints it would suggest that we should have serious concerns over the quality of service and transparency of fees with such a high number of complaints in a six-month period regarding banking and loans.

"There were over 184,000 complaints in the same period just relating to overcharging.

"One of the reasons that EuroDebt has launched a prepaid current account is to address both these issues, where clients want transparent pricing and want to avoid excessive charges if a direct debit or standing order fails.

"Obtaining a new account is very easy and requires no credit checks, simply verification of residency in the UK. We accept clients that are on a Debt Management Plan, an IVA or even bankrupt."

Tags; Debt Management and Banking, Young Family Finances, Credit Card Lifestyle,

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