The Financial Ombudsman Service mentioned the variety of complaints it handled fell to its lowest level in over a yr, in accordance to its newest quarterly knowledge.
It dealt with 68,000 complaints in the primary three months of this monetary yr, in contrast to 74,600 new circumstances in the identical interval a yr in the past, an 8.8% fall. It provides that 31% client complaints have been upheld throughout all merchandise.
The under-pressure physique, which handles complaints between customers and corporations, says it noticed “decrease ranges of complaints about on a regular basis monetary merchandise, resembling present accounts, bank cards and motor insurance coverage”.
The company says the most typical house mortgage grievance it dealt with in the interval involved first cost loans, which registered 1,066 circumstances, 25% of which have been upheld.
This was adopted by buy-to-let circumstances, which registered 157 complaints, 23% of which have been upheld.
The monetary product most complained about – motor finance fee – dropped to 21,500 circumstances in the primary quarter from 36,000 a yr in the past.
The knowledge comes after the Supreme Court final week sided with finance firms to restrict potential client payouts.
The ombudsman mentioned it might start charging claims administration firms that carry complaints on behalf of consumers for the primary time again in February.
It mentioned these corporations, which got here to prominence through the cost safety insurance coverage scandal, would have the option to carry ten circumstances to the service without cost a yr.
But after that, they are going to be charged £250 a case from April and would obtain a £175 rebate “if the result is in favour of the patron”.
The service says it dealt with 30,800 circumstances introduced by skilled representatives in the primary quarter, in contrast to 36,600 a yr in the past.
But provides: “It is probably going that the subsequent set of quarterly knowledge will present even fewer complaints introduced via this route.
“Prior to charging, we noticed a excessive proportion of withdrawn and deserted circumstances introduced by skilled representatives; nonetheless, we anticipate that this may drop over the subsequent few months as representatives carry better-evidenced complaints to the service.”
Financial Ombudsman Service interim chief ombudsman James Dipple-Johnstone says: “Following a yr of extraordinary demand, we not too long ago introduced reforms to modernise the UK’s redress system, making it extra agile and responsive and a significantly better match for at the moment’s financial system.”
Last week, Liam Coleman was appointed interim chair of the Financial Ombudsman Service, which is present process widespread adjustments to cut back its powers and velocity up its claims procedures.
As a results of the overview, the Financial Conduct Authority and the Financial Ombudsman Service will work collectively on high-volume complaints between customers and corporations to reduce the time it takes to settle disputes.
The regulators may even work collectively “on particular or novel points [that] can jam the system and trigger important delays”.
The transfer got here after UK Finance, amongst different our bodies, had known as for reform of the Financial Ombudsman Service after routinely making “choices that transcend FCA guidelines create authorized uncertainty”.
