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Ombudsman upholds decrease share of complaints

The Monetary Ombudsman Service’s grievance uphold price dropped to 34% within the quarter between April and June 2022, from 37% within the second half of 2021.

The ombudsman launched its newest quarterly complaints information immediately.

Over the quarter it acquired 65,740 new enquiries which resulted in 35,029 complaints.

Regardless of the drop in new complaints, the ombudsman warned that it expects complaints to rise within the close to future because of the challenges of the cost-of-living disaster.

The FOS stated: “Following the numerous will increase we noticed lately for complaints concerning the influence of Covid-19 and affordability, volumes of incoming complaints have returned to extra regular ranges. As we glance forward, we’re aware of the brand new challenges that the worsening financial atmosphere and the rising price of residing may deliver.

“In consequence, we might even see a rise within the quantity of complaints. We’ll proceed to have interaction with business our bodies, companies and the FCA about their expectations for grievance volumes over the approaching months.”

Complaints about unregulated collective funding schemes (UCIS) and different non-mainstream investments had the very best uphold price in Q1 at 74%. The FOS acquired 193 new complaints about these schemes.

Slightly below half of the complaints the ombudsman noticed about UCIS in Q1 (45%) are the place customers have complained they got unsuitable recommendation about transferring their present private pension right into a SIPP for the aim of investing in a UCIS.

The second most complained-about challenge, which made up 43% of instances, was complaints the place customers stated a SIPP supplier failed to hold out correct due diligence on investments to be included within the SIPP, or on companies concerned in giving recommendation about investments, which regularly grow to be unregulated.

Mostly complained about merchandise for the quarter had been present accounts (5,460) and bank cards (3,372).

The FOS stated that can be continued to see a excessive variety of complaints from victims of fraud and scams.

In Q1 2022/23, scams associated to faux funding alternatives made up round a 3rd of the authorised rip-off complaints the ombudsman acquired and is the quickest rising challenge as a proportion of the complaints it sees about these scams.

An authorised rip-off is the place an individual or enterprise is tricked into sending cash to a fraudster posing as a real account holder.

Simply over half of the funding scams seen by the ombudsman this quarter concerned cryptocurrencies, the place customers had been promised an funding that didn’t materialise, or had been persuaded to open a cryptocurrency account and inadvertently despatched cash to a fraudster.

The FOS additionally launched information on particular person corporations for the primary half of 2022.

Wealth supervisor St James’s Place made the record of corporations with the very best variety of complaints, with 89 complaints made in opposition to the agency. A complete of 42 of those complaints had been made in relation to investments, 38 in relation to decumulation life and pensions, 7 in relation to mortgages and residential finance, and a couple of in relation to common insurance coverage and safety.

Solely corporations in opposition to which the FOS has 20 new and 30 resolved complaints are added to the printed record.

Over the half, monetary providers corporations resolved 4,242 complaints through the ombudsman’s new early decision initiative.

The Monetary Ombudsman Service was arrange by Parliament in 2000 to resolve particular person complaints between monetary providers corporations and their prospects.

The Ombudsman launched an motion plan to enhance its providers and operational effectivity in December final 12 months.



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