Context
FOS has published issue 161 of its Ombudsman News, which includes sector-specific commentary and insights, looks at and analyses the recently published annual complaints data, and comments on the need to focus on customer service.
Key points to note
In relation to various financial services sectors, the publication contains some headline commentary, and sector-specific complaints data insights, about:
- Banking – Covid-19 has impacted the levels and types of complaints FOS saw. Where FOS upheld complaints, it tended to be because businesses needed to communicate more effectively. FOS has, though encouraged consumers to be pragmatic and understanding.
- Borrowing – effective responses to customers’ concerns about debt should be clear, empathetic and flexible, and businesses need to consider whether customers’ concerns about current repayments could highlight an issue with the original lending.
- Insurance – again as a result of the pandemic, over the year FOS saw a 240% increase in complaints about travel and specialist insurance, where consumers had been affected by cancellations and restrictions imposed in the travel, leisure and hospitality industries.
- Investments and pensions – in the event of changes in the value of investments and pensions, FOS’ experience suggests that clear communication can make the difference in preventing complaints. Businesses could do more to explain why the value of investments might change.
- Claims management companies – CMCs have also seen their operations impacted by Covid-19, which led to some complaints about updates and communication. FOS also received complaints about fees and commissions.
- Independent financial advisers – FOS publishes several types of complaints data. FOS has published data relating to complaints involving financial advisers, and where relevant, the previous year’s data for comparison.
Next actions
For Information only at this stage.