More consumers than ever are turning to Financial Services Complaints (FSCL) asking for help. In the 12 months to June the dispute resolution service received its highest number of complaints since it started in 2011.
Financial Ombudsman, Susan Taylor, says complaints are up by 6% to 1,426 and disputes (cases the service formally investigates) rose 10% to 359. The organisation has managed a 33% increase in completed investigations.
Complaints against financial advisers are also up for the period making 18% of the total, insurers, 14.5%, and credit card issuers 14%.
“The steady increase in complaints reflects the challenges in the wider economic environment,” says Taylor. “We expect this high level of complaints to persist as long as economic conditions remain difficult.”
Taylor says new rules increasing financial loss compensation from $350,000 to $500,000 could also lead to a further rise in complaints about the financial services industry.
Complaints about lenders made up the greatest proportion of complaints investigated as some borrowers continue to struggle with managing loans, particularly car, personal, and small business loans.
Of the cases formally investigated by FSCL, the largest proportion of complaints were about consumer credit products at 29%, followed by credit cards (14%), and mortgages (11.5%).
Taylor says common issues for consumers were around financial hardship, miscommunication, fraud, scams, and business loans.