Posting second quarter figures between July and September, the Financial Ombudsman Service revealed that the volume of complaints rose 20% over the same period last year, following the introduction of business loans, such as the Bounceback Loan Scheme and Coronavirus Business Suspension Loan Scheme.
The Financial Ombudsman said complaints from small businesses have “a significant increase” regarding travel insurance, business protection insurance and complaints from government businesses.
The latest figures show that the service received more than 68,700 complaints over the three-month period, up 19% in the last quarter, about 20% higher than the second quarter of 2019.
The Financial Ombudsman added that consumer inquiries rose 10% in the last quarter to exceed 119,200, but referrals rose 17% to exceed 9,200. The service added that PPI claims have lost the top spot as the financial product they complained most, and that if the profit margin is high at 88%, it has been replaced by complaints about guarantor loans.
Similarly, credit card-related complaints increased 26% per quarter in the second quarter, up 66% year-on-year.
With the introduction of new schemes such as Bounce Back Loans, the Financial Ombudsman has urged businesses to “maintain humanity and compassion” to ensure that customers receive proper care during these difficult times. Customer support staff added that together with technology we need to work together to deliver a faster, more empathetic customer experience.
Speaking about the data, Mamta Rodrigues, finance expert and chairman of Teleperformance comments said:
“Banks have the opportunity to support their clients by creating solutions for problematic economic situations. These individuals, well known as training specialists or correction managers, can work with their clients to find better payment solutions and alternatives that will drive bank outcomes while relieving immediate tensions from credit cards, mortgages and loan invoices.”
“As customers come first, new payment solutions are ‘solved’ and offer extended payment schemes will give you a higher overall repayment. This has the advantage of reducing collection costs and increasing customer loyalty while increasing revenue required. ”
