The number of complaints made to the Financial Services Ombudsman declined by 42 per cent last year to 4,477 although the level of compensation paid out by financial services groups rose by 2.4 per cent to €954,916 (from €931,668), according to the office’s latest annual report.
The biggest reduction in complaints was in investment services, which were down 65 per cent, compared with insurance, down 49 per cent and banking, which was 27 per cent lower.
The report states that financial service providers have an “added incentive” to manage complaints themselves now that the ombudsman has the power to publish the outcomes of findings.
These powers were granted in September 2013 and this report represents the first full year for which the details of the outcomes of complaints against financial services groups can be listed.
Stakeholder behaviour
“Financial services is the type of market in which “soft power” [name and shame] can be more effective in changing stakeholder behaviour than hard power [financial penalties],” said Ombudsman
Bill Prasifka
.
Danske topped the table in terms of the number of complaints that were substantiated by the ombudsman. It had 24 upheld and four partly substantiated.
Ulster Bank had 12 cases substantiated and 22 partly so. Permanent TSB had seven cases substantiated and 23 partly upheld. Bank of Ireland and AIB both had four cases substantiated. In the case of Bank of Ireland, 67 were partly substantiated and 29 at AIB.
Complaints were also upheld against New Ireland Assurance, Bank of Ireland Private Banking and EBS. Health insurer VHI had four complaints partly upheld.
