Financial services complaints soar

In his annual report for 2007, the Ombudsman revealed 4,374 complaints were made throughout the year – up 15% on 2006.

Mr Meade raised serious concerns about the sale of investments to the elderly.

“The matter of selling inappropriate investment products to elderly people continued to arise and is of concern,” said Mr Meade.

“There is a particular duty of care required when selling a policy to a person of advanced years.”

Mr Meade – who resolved 4,534 cases in 2007 with 59% in favour of the complainant – said significant decisions and compensation awards were made.

However, he maintained the size of the award did not matter compared to the customer and financial service provider getting a fair and impartial decision.

Cases highlighted in the report include an 86-year-old bachelor who lost – and later repaid – €50,000 after investing €850,00 from the sale of his farm; and the parents of a deceased tourist who were awarded stg£4,500 when a repatriation claim was handled insensitively by an insurance company.

The Ombudsman also published details about an injured professional rugby player who won a €200,000 insurance policy payout, and an unemployed single mother who was refunded €10,000 after an unsuitable investment was sold to her by a financial services company.

It also highlighted the case of an insurance company which misled its own sales team about insurance investment funds.

Mr Meade said the Financial Services Ombudsman has received more than 13,000 complaints since the office was established almost three years ago.

A staggering 1,600 of those have been lodged so far this year – already a 17% rise on 2007.

Account transactions, mortgages, loans, and credit card disputes were the main complaints about credit institutions, while motor, travel, life assurance and investment policies were the main grievances in the insurance sector.

Mr Meade also revealed that following the slight economic downturn in recent months, customers are now more conscious about how their investments are going.

“They are watching how their investments are going, especially as the stock markets have not been performing as well,” he said.

“People may be wondering if they were sold the right product, whether they got the right advice, and whether they have been treated fairly.

“Matters have improved considerably over the last few years but if anyone feels that they have not been dealt with properly, then they can come to me.

“However, there is an onus on people to be responsible as well. They should only invest in products when they have all of the necessary detail, have dealt with a reputable advisor or institution, and when they are happy that it is suitable for their needs.”

The Ombudsman added he also had to take court action against a small number of brokers to ensure they paid up the statutory levy of €125 to meet the €3.6m a year to run his Office, which receives 10,400 phone calls and attracts 70,000 visits to its website.