Complaints about income protection policies have risen 63 per cent over the last year, data from the Financial Ombudsman Service reveals.
The FOS has today published its latest quarterly complaints data which provides details about the types of products consumers complained about to the FOS.
The data shows between April and June the FOS received 291 IP complaints, compared to 179 IP complaints received in the same period last year.
Of the 291 IP complaints received over the last three months 31 per cent were upheld, compared to 41 per cent over the same period last year.
A spokeswoman for the FOS says: “We have seen an increase in IP complaints, which is predominantly down to the current economic climate. People who have lost their jobs go to their policy and may find the policy does not cover what they thought it covered them for, or else there may be some exclusions in the policy which prevent them from claiming.”
Overall the number of FOS complaints has fallen 39 per cent from 80,711 in the three months to last June to 57,076. Over half of these related to complaints about payment protection insurance.
The number of critical illness complaints has risen 44 per cent to 234 between April and June compared to 162 for the same period last year. The FOS upheld 20 per cent of CI complaints over the last three months.
Complaints about whole-of-life policies have risen 35 per cent from 393 to 530, with 26 per cent upheld.Sipp complaints are up 19 per cent from 108 to 128, with 46 per cent upheld. Personal pension complaints have increased by 17 per cent from 347 to 405,with 32 per cent upheld. Complaints about annuities are up 10 per cent from 103 to 113, with 25 per cent upheld.
Complaints about portfolio management have risen 18 per cent from 254 to 300. The FOS upheld 59 per cent of portfolio management complaints.
04.07.2012 - Money Marketing