A record number of complaints were lodged with the Financial Services and Pensions Ombudsman (FSPO) last year, with concerns over customer service dominating and a significant number of consumers making contact over fraudulent activity on their accounts, according to a report.
The report from the financial watchdog highlights a jump of 29 per cent to 6,182 in the number of complaints, the highest recorded by the ombudsman with the banking sector accounting for the majority of the issues addressed.
“Customer service is again the conduct most complained of for the third year in a row. It is disappointing that many of the complaints received by this office continue to be of a nature that could be resolved earlier, without a need for our services,” said FSPO ombudsman Liam Sloyan.
“It is important for providers to consider what measures they can take to reduce the number of complaints arising,” he said. “An increase of almost 30 per cent in the number of complaints being made to the Financial Services and Pensions Ombudsman in just one year should be a cause for reflection amongst providers.”
Nearly a quarter of all banking complaints received included conduct grouped under the heading Disputed Transactions, which includes financial scams and fraud.
The FSPO cannot investigate fraud, which is a matter for the Garda, but it investigates complaints relating to service failings in dealing with a customer who suspects fraud on their account.
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According to the report, the FSPO closed a significant number of complaints through mediation and early-stage interventions, with 85 per cent closing within 12 months of being made.
A total of 24 per cent of grievances concerned customer service issues with the banking sector accounting for 62 per cent. The insurance sector clocked up just under one in four complaints, with the investment and pension sectors and non-regulated entities comprising the remainder.
Of the 5,184 complaints closed, outcomes worth €4.7 million were delivered to consumers with €2.9 million agreed through mediation, and €321,00 directed through legally binding decisions.
A further €1.3 million was paid to complainants by providers across 114 grievances resolved before the conclusion of the FSPO’s formal investigation process while €175,543 in redress came from providers, which resulted in complaints that were not upheld because the provider had made an offer during the investigation that the FSPO determined satisfactory.
“It’s notable that since the introduction of mediation as the default complaint resolution method to resolve complaints, we have achieved considerable success in facilitating resolution … by agreement directly between providers and their customers,” said Mr Sloyan. “Typically, more than 70 per cent of complaints referred to mediation are successfully resolved through a mediation settlement or clarification of the complaint.”
The report also highlights trends and potentially systematic issues arising from complaint outcomes which, it said “may warrant consideration”.
A total of eight legally binding decisions were referred to the Central Bank of Ireland as well as 107 tracker mortgage-related decisions and 26 decisions issued in complaints concerning declined insurance claims for business interruption losses.
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