Financial services complaints soar
A record 210,000 complaints against financial services firms are expected to be handled by the Financial Ombudsman Service during the coming year.
The figure is 27% higher than the number of cases being looked at in the current financial year, which has itself seen a 44% jump compared with the previous 12 months.
The group expects to receive 190,000 new complaints from people who are unhappy with treatment they have received from a financial services firms during the 12 months to March 2011.
It blamed the projected increase, which would be up from the expected 167,000 complaints it will receive during 2009-10, on the impact of the recession, as well as the ongoing high volume of complaints it is receiving about controversial payment protection insurance (PPI).
The ombudsman expects to receive a further 46,000 complaints about PPI, which covers debt repayments if the holder is unable to work or loses their job, during 2010-11, up from 42,700 this year.
It also predicts a 55% jump in complaints relating to consumer credit to 10,200, as well as a 16% rise in disputes relating to banking to 85,000.
The group warned that the continued growth in its workload would lead to its operating costs rising from £96.6 million this year to £113.5 million in 2010-11, partly due to the need to recruit 300 additional staff to help resolve the record number of complaints it expects to receive.