FSCL sees a surge in overall complaints

Complaints against FSCL have increased over the past year, but while complaints against financial companies and lenders have declined, they remain low for health and life insurers.

Friday, October 15, 2021 12:11 PM

Matthew Martin

Susan Taylor.

Financial Services Complaints Ltd (FSCL), an independent dispute resolution service, 2020/21 Annual ReportThe number of complaints received increased from 768 last year to 931 and the number of supported or partially supported complaints increased from 11 last year to 33.

According to the report, complaints to insurance companies were the most frequently investigated cases, at 43%, up from 35% in the previous year.

However, most of the complaints against insurance companies were travel insurance (100 cases), followed by consumer credit with 44 cases and mortgages with 16 cases.

There were only two complaints against health insurance companies (same as last year), three stable income protection complaints, and nine complaints against life insurance companies.

Susan Taylor, CEO of FSCL, said in a report that last year was the busiest year on record.

“We have completed 286 surveys, compared to 298 in 2019/2020,” says Taylor.

FSCL responded to 1,370 inquiries about financial services providers. This inquiry is not a formal complaint, but a more general inquiry related to financial services.

We also negotiated or awarded a total of $ 1,751,388, a significant increase from $ 989,641 in 2019/20.

When settled between a financial adviser and his client, the largest personal settlement was just over $ 500,000.

This was significantly higher than the amount FSCL could formally award ($ 200,000), but both parties were keen to resolve the issue through the mediation process.

Jane Mears, Chairman of the Board of Directors of FSCL, said that many of the laws that FSCL handles on a daily basis have undergone significant changes this year.

“The Ministry of Business Innovation and Employment is currently considering the rules for an approved financial dispute resolution scheme,” says Mears.

“One possible change is to raise the financial cap of the system from $ 200,000 to $ 350,000. This review is important and will provide more consumers with access to the judiciary. I think it will be useful. “

The FSCL is also continuing its efforts to use the ombudsman title.

“We believe this will also improve consumer access to justice. The FSCL has successfully considered the decision of the Ombudsman to refuse to use the name, and the Ombudsman has pre-applied for the FSCL. I am pleased that the High Court has decided that the decision has been made.

“But we have appealed the High Court’s order to the Court of Appeals. The court has ombudsman to give the FSCL the use of the name rather than referencing the application for further (third) consideration. I would like to instruct the Secretary.

“We hope that the Court of Appeals will be heard later this year or very early in 2022,” Meares said.

tag: Complaints Financial company FSCL Health insurance Life insurance Susan Taylor

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FSCL sees a surge in overall complaints

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