CENTS & NONSENSE:  The line is busy again. Ok, now I'm through but I'm on hold. The automated bank branch voice comes on: "Press 1 to buy our latest high-cost, low-profit investment product. Press 2 to become a credit slave. Press 3 to wait on hold for an hour and then be disconnected. Cash-cows, your business is important to us so please stay on the line."

Sound familiar? It is no surprise that consumer complaints to the Financial Services Ombudsman Joe Meade are up by 21 per cent in the first four months of this year. His office recorded 1,500 complaints over this period, with about 860 related to insurance and 640 to credit institutions.

Sixty per cent of the cases, including negotiated settlements, were resolved in favour of the consumer. Quinn Direct, Irish Nationwide and Ulster Bank are all challenging rulings by the ombudsman that would force them to refund more than €10 million in fees, penalty charges or losses to their customers.

Many complaints related to sneaky charges, poor information and bad communication. Customer service does not seem to be a priority for many banks and insurance companies. They might offer you free banking or cash or a few months for free to switch to them but once they get you, you're forgotten about.

Over the last few months, letters to this section in The Irish Times reveal customers' deep dissatisfaction with the service and information provided by Irish banks.

Readers report they are misinformed about some products by frontline staff. The most frequent complaint concerns the new Cowen initiative that allows some people, under the age of 75 and with an income of less than €50,000 in the previous year, to transfer some of the their matured SSIA funds into a PRSA to receive a further bonus.

Those already drawing down a pension are regularly being told, inaccurately, that they cannot join the scheme. The worst offenders appear to be Bank of Ireland, Hibernian and Irish Life & Permanent. Happily, one provider, Eagle Star, has been quite good about accommodating these customers.

The problems seem to arise because personnel are not properly briefed about the product. Why? The banks and pension providers have little interest in marketing or selling a low-profit product.

Bank overcharging has also been a frequent theme. Despite all the scandals and lack of public confidence in these institutions, little has changed. On May 4th we ran a story about First Active compensating customers for overcharging them on mortgage protection a full three years after they discovered they had a problem.

This is just not good enough. What will force banks, insurance companies and pensions providers to change their behaviour?

Irish banks are the most profitable in Europe and have been for some time. Recently, competition has forced them to offer free banking and better mortgage and credit card rates. Sadly, once the new players gain enough market share they will probably roll back on better deals for consumers.

We have more regulatory protection than ever before but, although awareness has increased, enforcement is still poor. And none of the agencies assigned to protect consumers has taken on a pro-active advocacy role.

In Britain, consumer and government bodies have the power to initiate and investigate problems. For example, the UK Competition Commission this week revealed its findings on personal current account practices in Northern Ireland after a two-year investigation: "Customers may be paying more in charges and in a wider range of circumstances, and may be receiving lower interest when their accounts are in credit, than might be expected in a competitive market."

The watchdog says that by next April banks in the North must provide clearer information on fees and charges.

Bank of Ireland, First Trust (AIB), Ulster Bank, Northern Bank and Halifax all operate in the North. Acting chief executive of the National Consumer Agency in Ireland, Ann Fitzgerald, says the report "raises interesting questions about the fair treatment of personal banking customers in the Republic".

Consumer policy in Ireland is reactive rather than pro-active. Regulators here can only take action against bad practices if they have specific complaints from customers.

So, what can you do until things improve? Complain loudly, often and officially. Document every conversation, e-mail and letter. These companies are so willing to take your money yet they give you so little in return. It is time to demand better customer service and some respect.

Margaret E. Ward is a journalist specialising in personal finance and consumer issues. She is also a director of Clear Ink, the Clear English Specialists: cents@clearink.ie