You are here: Home - News -

Mortgage market complaints fall while payday loan woes rocket – FOS

by:
  • 13/06/2017
  • 0
Mortgage market complaints fall while payday loan woes rocket – FOS
Complaints made about mortgages fell last year against a backdrop of rising customer frustration over payday and consumer credit products, official data reveals.

The total number of new complaints received by the Financial Ombudsman Service (FOS) in the financial year 2016/2017 was 321,283 – down by 6% from 340,899 in the previous year.

Mortgages accounted for 7% of overall complaints, falling from 7.5%.

The Financial Ombudsman Service’s annual review highlights an 8% drop in the volume of complaints received about mortgages from 11,288 to 10,428 in the financial year 2016/2017.

Of the types of businesses complained about, mortgage intermediaries represented 2.5%; a slight rise on the previous year when they accounted for 2% of complaints.

In the period, 8,750 complaints were resolved about general insurance and mortgage brokers, with 59% upheld.

 

Soaring consumer credit dissatisfaction

Complaints about consumer credit products and services rose from 9% of overall complaints to 17.5%.

The volume of new complaints received about products and services in this sector saw a sharp increase of 89% from 13,713 to 25,984 year-on-year.

Payday loan complaints rocketed by 227% from 3,216 grievances received in 15/16 to 10,529 in 16/17. Some 59% of the complaints resolved by FOS were upheld.

Grievances about guarantor loans rose by 182% year-on-year, and log book loan complaints increased by 75%.

Caroline Wayman, chief ombudsman and FOS chief executive, said: “The FCA’s action on high-cost short-term credit has had an impact and we’re generally looking into complaints about borrowing that pre-date its tougher rules. However, taken together with wider insight into consumer indebtedness, it’s clear that financial difficulties and financial exclusion, and the vulnerability they can both bring and result from, remain very current issues.”

Wayman added: “This year we continued to engage with the short-term lending sector including talking to trade associations and running a workshop for payday lenders to help prevent complaints and encourage fairness when problems arise.”

 

Mortgage-related industries

Customers who complained about secured loans rose by 2% year-on-year.

Building warranties caused 487 grievances compared to 287 in the previous year; a rise of 70%.

Complaints about critical illness cover increased by 14% from 747 to 849 year-on-year.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
head shot of Charles Morley
Metro Bank enters consumer buy-to-let market

Metro Bank has confirmed it is entering the consumer buy-to-let (BTL) market.

Close