Last year, the Financial Services and Pensions Ombudsman (FSPO) experienced a record high of customer complaints, says a recent report. A surge of 29 per cent from the previous year brought the total to 6,182, exceeding any previous complaint number records. Predominantly, the issues raised were relating to the banking industry.
The report drew particular attention to constant poor customer service, a problem which has been the principle cause of complaints in the last three years. Liam Sloyan, the FSPO ombudsman, expressed his disappointments that many such complaints ought to be addressed earlier, circumventing the need for the FSPO’s intervention.
Sloyan stressed the essential need for providers to contemplate ways of decreasing complaints. He emphasised that a yearly increase of nearly 30 per cent for complaints to FSPO should compel providers towards introspection.
The report categorises ‘Disputed Transactions’ as being inclusive of financial fraud and scams; these amounted to nearly a quarter of all banking-related complaints. Although FSPO lacks the authority to delve into fraud matters, which is a duty of the Garda, its mandate does extend to scrutinising complaints regarding service downfalls when dealing with a potentially fraudulent event on a client’s account.
Among the complaints closed by the FSPO, a considerable number were resolved through early-stage mediation and interventions, with 85 per cent resolved within a year. On the whole, 24 per cent of all complaints were about customer care, with the banking industry responsible for 62 per cent, followed by the insurance sector which was the subject of just under a quarter of all complaints. Investments and pensions sectors and non-regulated bodies accounted for the remaining complaints.
Out of the 5,184 complaints the FSPO resolved, consumers received €4.7 million in resolutions. This consisted of €2.9 million achieved via mediation and €321,000 allocated via legally binding decisions. An additional €1.3 million was paid by providers to resolve 114 grievances before the FSPO’s formal inquiry procedure concluded. Providers also paid €175,543 as redress, which resulted from complaints not backed by the FSPO as the providers had made satisfactory offers during the investigation process.
Mr. Sloyan pointed out the considerable progress made in resolving misunderstandings following the adoption of mediation as the primary approach to addressing dissatisfactions. On average, over 70% of issues sent to mediation, said he, are effectively resolved, either through a settlement or by the complaint being elucidated. The review also identifies potential chronic problems and emerging trends from the outcomes of these complaints, suggesting that they might require further attention.
In total, the Central Bank of Ireland received eight legal verdicts, 107 decisions related to tracker mortgages, and 26 on rejections of insurance claims for business disruption losses.