Complaints regarding insurance coverage and finance of motor automobiles have risen from 6,744 between July and September in 2022 to 11,869 for a similar interval this 12 months.
The dramatic rise in complaints regarding motor automobiles signifies that they account for 25% of all complaints the Monetary Ombudsman Service (FOS) obtained through the second quarter of this monetary 12 months.
The complaints regarding insurance coverage are largely to do with valuation disputes, customer support points, and delays in claims being paid. The bulk had been to do with vehicles and bikes and the ombudsman mentioned additionally they obtained a small quantity associated to caravans.
It comes as the value of automobile insurance coverage has additionally risen considerably and is at a report excessive.
Of the complaints associated to motor finance and shopper credit score, 4,622 had been associated to rent buy agreements and 1,569 had been about conditional sale agreements.
There have been additionally 4,036 complaints regarding insurance coverage insurance policies for vehicles and bikes. These three figures are the very best seen in over 5 years.
‘Too many speculative and poorly evidenced complaints’
A major variety of complaints despatched to the FOS weren’t from people however from ‘skilled representatives’ together with claims administration companies.
Of those complaints, greater than 90% associated to unaffordable or irresponsible lending whereas 70% had been about charges, prices and fee.
But the upheld fee of complaints despatched in by these representatives was simply 8% in comparison with an upheld fee of 42% of complaints despatched by people. The speed of upheld claims by the FOS for all complaints in all classes was 35% of these despatched by these representatives.
James Dipple-Johnstone, deputy chief ombudsman on the Monetary Ombudsman, mentioned they’re seeing “too many speculative and poorly evidenced complaints” despatched in by skilled representatives.
He mentioned: “The overwhelming majority of motor finance complaints are actually introduced by skilled representatives. We’re seeing a mixture of each good and dangerous follow, however with an uphold fee of just8%, it’s clear some representatives might do extra to study from our established method about which instances are more likely to have benefit and advise their purchasers accordingly.
“It’s necessary to remind shoppers additionally that they don’t want to make use of knowledgeable consultant as our service is free, unbiased and straightforward to make use of.”
Throughout all classes, there have been 46,716 new complaints despatched to the FOS over the second quarter, in comparison with 38,470 in the identical interval of 2022. Present accounts and bank cards had been additionally within the top-five most complained about monetary merchandise.
‘Regarding to see such a major rise’
Abby Thomas, chief government and chief ombudsman of the Monetary Ombudsman Service, mentioned: “Many individuals rely on their vehicles so it’s regarding to see such a major rise in vehicle-related complaints.
“Shopping for a automobile will be expensive and disturbing, and we’re now additionally more and more listening to from individuals fearful about whether or not they will pay their finance offers.
“What’s clear is that regardless of the perceived problem, companies want to make sure they’re treating clients with transparency and equity.”
