The FSA has reported a significant increase in complaints to regulated firms in the second half of 2009, compared with the first half of 2009.
The regulator says these figures include two years’ worth of back-dated complaints related to the unauthorised overdraft charges test case. The complaints were put on hold with an FSA waiver for the duration of the test case between the OFT and major banks, which ended last December. Banks now have to deal with these complaints which accounts for most of the increase in complaints, specifically related to banking during this period.
Between July and the end of December 2009 the overall level of complaints has increased to 2.6 million, while complaints about banking products in this period increased to 2,014,371 – mainly due to the back-dated complaints related to unauthorised bank charges.
Under the firms category, the back-dated complaints accounted for much of the increase about banks and building societies which increased to 2,225,458.
The backdated complaints also led to an increase in complaints about terms and disputed sums or charges to 1,572,133 and these complaints form the majority of the complaints about current accounts, which increased to 1,627,310.
The total amount of redress paid by firms was £284 million with the largest amount of redress by product for general insurance and pure protection (£144 million).
