Bank Complaints at Record Levels Globally

The Financial Services Ombudsman in Ireland recorded the highest number of complaints against banks in recent months. Customers are complaining about being harassed and mistreated by banks and financial institutions over mortgage arrears and loan repayment disputes.

In 2011, 7,2300 consumers filed complaints claiming to have been subjected to heavy handed tactics by banks and other institutions.

The Financial Services Ombudsman in Ireland recorded the highest number of complaints against banks in recent months. Customers are complaining about being harassed and mistreated by banks and financial institutions over mortgage arrears and loan repayment disputes.

In 2011, 7,2300 consumers filed complaints claiming to have been subjected to heavy handed tactics by banks and other institutions.

According to the Herald:

Ombudsman Bill Prasifka signed off on settlements worth €2.6m to complainants including €1.3m between June and December. Almost half the awards in the second half of the year — €806,262 — were related to investment complaints. A total of €284,253 was paid in compensation over irregularities in the insurance sector and €261,846 awarded for banking matters.

“The large increase in complaints in certain areas reflects the immense difficulties facing consumers and the financial industry as a whole,” Mr Prasifka said.

In Christchurch, where recent earthquakes devestated the city and caused thousands to lose their homes, the NZ Herald reported:

 

Hardship is keeping complaints to the Banking Ombudsman at record high levels, and the office expects no let up given the effect of the Canterbury earthquake on Christchurch residents and the wider economy. Banking Ombudsman Deborah Battell said complaints are currently around 1000 a year, about double the level recorded just before the global financial crisis of 2008-9.

“People are under a huge amount of stress and obviously looking for ways to try and cope with the situation,” Battell said.

[quote]”Right now, we can see hardship underlying a raft of different complaints, including loan defaults, mortgagee sales, allegations of irresponsible lending, complaints about mortgage break fees and applications to withdraw money from KiwiSaver.”

Following the Canterbury earthquake, a number of customers have been given repayment holidays on mortgages and other loans. “But it’s important that customers understand that interest still accrues while payments are on hold and gets added to their loan,” she said.[/quote]

“Customers should approach their banking service providers about their financial position before they get into arrears. And if they do get into arrears, they need to talk to their providers so that they can try and stop getting further into debt.”

There’s just no letting up when it comes to banks is there?