Bank complaints double on overdraft charges backlog

| May 12, 2010 | 0 Comments
Bank complaints double on overdraft charges backlog<br />

Over two million consumers complained to their bank during the second half of 2009, more than twice as many as during the first half of the year.

Between July and December 2.65 million people made a complaint about a financial company, with 2.2 million of those directed at banks and building societies.

The FSA said the sharp increase occurred because banks were forced to deal with two years of backdated complaints after they won the right in court to charge fees for unauthorised overdrafts.

Complaints about fees related to unauthorised overdrafts were put on hold by the FSA while the case was in court.

General insurance firms received the second highest level of complaints with 421,368.

Nearly half (44%) of these related to the advice and sale of insurance products, including customers seeking redress for mis-sold payment protection insurance (PPI).

In total, only 42% of complaints were upheld in favour of the consumer, with financial companies paying out £284 million in compensation.

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