January 10, 2013 / 8:44 AM / in 5 years

UK's financial ombudsman sees 45 pct rise in cases

LONDON, Jan 10 (Reuters) - Britain’s Financial Ombudsman Service said it had seen a 45 percent rise in new cases in its current financial year, driven by a surge in complaints about mis-sold loan insurance.

The Ombudsman, which deals with cases where banks and their customers cannot agree a settlement, said on Thursday it had taken on 385,000 new cases since April 2012. That included a record 245,000 new cases relating to the mis-selling of payment protection insurance.

The Ombudsman said that it had taken on 1,000 more staff to deal with the unprecedented number of complaints.

It also said it is raising fees charged to banks and other financial services when they lose cases by 50 pounds ($80.04) to 550 pounds. The additional fees charged on cases relating to payment protection insurance will be kept at 350 pounds.

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