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Mortgage complaints dip by 12% – FOS

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  • 15/08/2017
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Mortgage complaints dip by 12% – FOS
Consumer complaints about mortgages fell in the first quarter of this financial year, according to the Financial Ombudsman Service (FOS).

Mortgages accounted for just 3% of all complaints received by the FOS during this period.

New cases lodged by consumers at the FOS in the three months to June fell by 12% compared to the same period last year (2,309 compared to 2,620 in 2016).

The number of cases going to full adjudication by the regulator did increase by 25% – from 467 to 586.

However, encouragingly for the mortgage sector, the rate at which claims were upheld fell sharply from 44% to 24% – and this figure was down on the overall average last year of 31%.

 

PPI rolls on

Overall the FOS received 135,779 enquiries and 80,234 new complaints (down from 81,709) between April and June – with 8,414 complaints passed to an ombudsman for a final decision (down from 13,634).

On average, it upheld 35% of these complaints it resolved.

Payment Protection Insurance (PPI) remained the most complained-about financial product, with 42,401 new complaints – which makes up more than half of all cases received.

Current accounts were the second most complained-about product, with 5,229 new complaints.

 

Consumer credit

In publishing the results, the FOS highlighted consumer credit (which includes products and services such as payday loans, hire purchase, and catalogue shopping) as a particular area for concern.

This area accounted for 17.5% of the complaints received in 2016/17 – compared with 9% in 2015/2016 and the FOS noted it had “continued to hear from people who’ve fallen into debt – who may argue they shouldn’t have been lent to at all”.

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