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FOS Annual complaints data published

The Financial Ombudsman Service (FOS) has published its annual review of consumer complaints received between March 2013 and March 2014.

Overall the number of complaints has increased by 1%. Complaints about insurance (including payment protection insurance (PPI) made up 84% of all the new cases that the FOS received. This increased 3% on the previous year. PPI accounted for 93% of all insurance complaints, with other insurance products accounting for 7%.

There has been a 6% increase in new PPI complaints, which have risen to 399,939 complaints.  This increase resulted in a peak of more than 12,000 new PPI complaints per week but this has since fallen to 6,000 and will hopefully continue to fall over the coming year. Of these new complaints 65% of them were upheld.   

Overall figures show Pension complaints declined 1%. However there has been a significant increase in the number of self-invested personal pensions (SIPPS) complaints; the number of complaints nearly doubling in the last year (49%).  Whereas complaints relating to state earnings-related pensions increased by 11% year-on-year and free-standing additional voluntary contribution schemes complaints have increased from 95 to 172 (81% increase).

Annuities complaints were down from 624 to 601 complaintsMany of these complaints are due to consumers being unhappy with being offered a much smaller annuity than they expected.

After PPI, Car and Motorcycle insurance still account for more complaints than any other area of insurance. However figures from this year have seen complaints fall from 7,785 to 7,190 with only 38% of these cases being upheld. 

The FOS figures revealed a new complaint; Card protection policy with 1,118 cases but this was mainly due to consumers complaining that they would not have taken out card protection if they had been told about the automatic legal protection they already had in relation to cards.  

Investment-related complaints continue to fall with an overall 34% drop. There has been a significant rise in unregulated collective investment schemes (UCIS) and similar higher risk investments.  

Complaints regarding Whole-of-Life and Term Assurance have continued to fall significantly. 

Other complaints figures include:

  • Income protection complaints down by 3%. 
  • Critical illness down by 34% from 1370 to 906 complaints.  
  • Buildings insurance dropped marginally from 4,611 to 4,095 with 44% of the cases being upheld.  This is a 48% drop on the previous year.
  • Contents insurance dropped from 2,027 to 1771, along with a drop in upheld cases to 39%.
  • Car/motorcycle insurance dropped marginally from 7,785 to 7190 and the number of upheld cases also dropped from 47%-38%.
  • Travel insurance dropped marginally from 2, 742 to 2271.  Notably the claims upheld rose from 48% to 53%.
  • Personal accident insurance had a 4% drop in complaints.

Last updated 01/07/2016