FOS data shows complaints are up by 89%

The FOS’s data shows that consumer credit complaints increased by 89% in the first quarter of the year. The published data also shows that these complaints accounted for 17.5% of complaints in 2016/2017 compared to 9% in 2015/2016. However, this data does not include PPI.

The FOS has stated that in the first quarter of this year they also received 80,000 new cases and 135,000 enquiries. The FOS also reportedly took on ‘a total of around 170,000 new cases in the first six months of this year’. They also mentioned that they have upheld 35% of all complaints that they ‘resolved’.

New cases FOS received between April and June 2017 included: 42,401 related to PPI (for which 40 percent of cases were upheld), 5,229 related to current accounts (27 percent upheld), 3,137 related to car and motorcycle insurance (29 percent upheld), 3,126 related to payday loans (68 percent upheld), 3,097 related to packaged bank accounts (13 percent upheld), 2,640 related to credit card accounts (30 percent upheld). (Credit Strategy, 2017)

Also mentioned by the FOS, was that a ‘significant proportion of people are unhappy with the quality of the goods or services they’ve got on credit’. As well as the fact that people are ‘frustrated by administrative issues’ or end up caught up in charges they hadn’t expected.

As preferences change – for example, from payday loans to instalment loans – we’ve seen that lenders still aren’t always making the right call in checking people will be able to repay what they owe – Caroline Wayman, Chief Ombudsman

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Read the original story here

Click here to see the FOS data

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