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News: Endowment complaint deluge eases

The number of disputes about mortgage endowments has reached a turning point the Financial Ombudsman Service has revealed.

 

In its annual review for 2005/06 the FOS revealed that it had handled 69,149 complaints about mortgage endowments during the period - the equivalent of 250 each working day of the year.

"For the first time in recent years we have seen an annual decrease – albeit only a very tiny one – in the volume of mortgage endowment complaints," said chairman, Sir Christopher Kelly KCB.

"This may indicate that the deluge of mortgage endowment complaints could finally be on the point of receding," he added.

The report indicates that the numbers were not about to decline though. In fact, the FOS expect – and are geared up for – similarly high levels of mortgage endowment complaints to continue throughout 2006/07. "…the steady flow of incoming new cases – predicted to continue into next year – means we are still operating at high-water level," said Sir Christopher.

The Ombudsman said that complaints about investments, excluding mortgage endowments, had fallen by 18% over the last year, while complaints about banking and insurance climbed 31% and 25% respectively.

The FOS said it had resolved a total of 119,432 financial disputes over the period - a 31% increase over the previous year.

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