Warning made to finance firms
The Financial Services Ombudsman has warned financial institutions that they can no longer take advantage of anyone — especially the elderly and disadvantaged — by selling inappropriate products to them.
Joe Meade, speaking at Experian’s annual business lunch, stated that financial institutions must ensure that customers are made fully aware of all the features of the products they are being sold and to explain the potential downsides.
Management must also take responsibility for their sales staff to ensure that customers receive the highest level of advice on product sales.
Mr Meade revealed a huge increase in the number of complaints his office has received this year so far.
Figures for the year to date show a 29% increase over last year, with 2,200 complaints received in the first five months of 2008.
However, the financial watchdog’s office only receives a small percentage of complaints relative to the number of financial transactions undertaken each year, and that approximately 60% of cases are upheld.
“If you treat customers fairly then business will thrive.
“So please improve and ensure that customer care is your number one business goal.”
Since business began on April 1, 2005, the Office of the Financial Services Ombudsman has received 14,000 complaints. Only 15 decisions have been appealed to the High Court, representing just 0.17% of cases decided on by the financial watchdog.
