Insurance sector biggest source of complaints for Financial Services Ombudsman

Thursday 13 September 2012 12.04
Financial Services Ombudsman received 3,700 complaints in the first six months of the year
Financial Services Ombudsman received 3,700 complaints in the first six months of the year

There has been a slight rise in the number of consumers lodging complaints about their financial institutions.

The latest report from the Financial Services Ombudsman shows that 3,700 complaints were received in the first half of 2012 - a 5% increase on the last six months of last year.

The figures also show the number of people who have complained about Payment Protection Insurance has almost doubled to over 400.

The figures reveal dissatisfaction with the insurance sector accounted for most of the complaints received by the Financial Ombudsman during the first six months of this year.

Around 1,900 complaints against insurance providers were lodged with nearly a quarter concerning the Payment Protection product and its alleged mis-selling.

Over 1,000 complaints were received from those unhappy with their banks. The most common complaint concerned mortgages and their repayment terms.

Out of the total 1,600 complaints that were dealt with during the six month period, 72% were not upheld with 28% being upheld or partly upheld.

The total amount paid out in compensation to those were wronged amounted to €790,000 in the six month period.