The Financial Ombudsman Service (FOS) received
15 percent more complaints against financial institutions in the
second half of 2010 than in the preceding six months, with motor
finance companies seeing their share of the increase.
Of all motor finance providers covered by the
statistics published by the FOS, only BMW Financial Services and
Banque PSA Finance saw declines in the number of complaints
received.
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However, the majority of complaints connected
to motor finance companies were related to Payment Protection
Insurance (PPI), reflecting the continuing increase in action by
Claims Management Companies against providers of the product.
PPI complaints made up 50 percent of all
issues forwarded to the FOS in the year’s final quarter, up from 45
percent in Q3 and 34 percent in Q2, the first quarter in which the
FOS began publishing complaint figures by product association.
By contrast, complaints about point of sale
credit agreements made up only 1 percent of the total, down from 2
percent in Q3.
With PPI complaints not taken into account,
both market leader Black Horse and number two Santander Consumer
Finance saw lower numbers of complaints make it through to the FOS
in the second half of the year. BMW Financial Services was the only
business to have generated no PPI complaints at all.
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By GlobalData
