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Mortgage complaints up 37%

There were 2,796 complaints to the Financial Ombudsman Service between July and September, up from 2,044 in the previous quarter.

However only 33% of the complaints were resolved in favour of the consumer in Q3, compared with 36% in Q2.

The FOS also received 895 complaints in Q3 relating to mortgage endowments, with 28% resolved in favour of the consumer, up from 603 in Q2 and 26% resolved in the consumers’ favour.

Complaints relating to the mis-selling of payment protection insurance continued to dominated complaints to FOS in Q2, accounting for 38% of all complaints followed by credit cards accounts 11.5%, current accounts 8.5% and mortgages 5.5%.

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  • Glen McKeown 22nd October 2011 at 2:26 pm

    It fascinating to note that only 1/3rd of complaints reaching the FOS are upheld. The media still use the total complaints figure, not the the justified complaints figure, which makes for a better headline. Are the headlines a significant reason for complainants pressing their position because they are under the false impression that the FOS will pay out willy-nilly, as inferred by the headlines. And what effect do the “false” figures have on the policy makers.
    There is every indication that the market is vastly improved over where it was a few years ago. And there are strong indications that the Regulators are trying to create a storm in a teacup.
    In any walk of life there are bound to be a level of complaints – no individual or organisation is perfect. What we need to understand is whether the level of complaints being received is “normal” or excessive. If it is “normal” then the system has now reached equilibrium, and further expenditure on improvements will not be cost effective. But do not expect the Regulator to tell you that – that’s more than their jobs worth!

  • Peter Turner 18th October 2011 at 4:11 pm

    #anonymous @ 3.06

    The fact that a person is self-employed does not exempt them from being ill – and and at least some PPI policies do have provision for unavailability of work.

    I agree that if it is possible to prove, beyond all reasonable doubt, that a person has acted fraudulently they should be prosecuted but that should not just apply to those regulated by the FSA. It apply equally to consumers and ambulance chasers.

  • PPI Claimant 18th October 2011 at 3:06 pm

    Many people have made PPI claims perfectly legitimately having been mis-sold policies which were neither relevant (eg the person was self employed) nor legal.
    In most cases these policies have come from finance companies and banks seeking to make profit illegally from customers who did not realise that they were not covered and that the policy was not worth the paper it was written on.
    These people have paid out thousands of pounds of their own money for something the seller knew was worthless with exclusion clauses hidden deep in the small print.
    This is actually fraud and the lenders involved should be prosecuted, not just asked to pay back their ill gotten gains.
    Very, very few brokers are involved in this because they provide a professional service which ensures clients get the right policies to suit their budget, risk profile and needs.
    Yes, there are companies seeking to make money out of those who think they have a claim by charging a ‘non refundable fee’ up front. These operations are just as fraudulant than the lenders who mis-sold, however that does not make every claimant a con artist, nor every company working on behalf of claimants ‘parasite ambulance chasers’.

  • Mortgageboy 18th October 2011 at 1:58 pm

    Well said Robin, the claims culture in this country is appalling, we live in a society where clients do not read forms before signing them, they do not take responsibility for the signature and have selective memories!!!

  • Robin 18th October 2011 at 11:51 am

    I wonder how many of these ‘complaints’ were because of the parasite ambulance chasing’ companies now ringing the public advising them to complain and they will ‘get some free money in compo’?