CASES resolved by the Channel Islands financial ombudsman more than doubled last year despite a 20% increase in the number of case files opened, according to the organisation’s latest annual report.
Established by separate legislation in Jersey and Guernsey, the CIFO addresses complaints against financial services providers and seeks to encourage continuous improvement in the sector.
Reviewing the year’s activities, ombudsman Douglas Melville said the willingness of financial service providers and customers to work with his staff to achieve resolution by mediation was a key factor in the positive outcomes.
‘Having a high proportion of case files resolve through early mediation is far more efficient and generally enables faster resolution for the parties, avoiding the need for our team to prepare detailed written provisional and/or final ombudsman decisions,’ he said in the report.
In cases warranting a financial award, £701,610 was granted in compensation by the ombudsman, an average of £4,585 with the largest payment being £104,351, some £45,000 under the maximum amount permitted. The ombudsman identified a significant number of enquiries and complaints related to home emergency insurance claims – for example boiler repair insurance – and to payment fraud.
Analysis of the complaints between Jersey and Guernsey confirms the different composition of the financial services sectors in the two islands, with 75% of Jersey complaints relating to banking and 66% of Guernsey complaints to insurance. The vast majority of case files opened last year related to complaints from outside the Island. Of the 27% prompted by the dissatisfaction of residents, 19% came from Jersey and 8% from Guernsey.
The ombudsman identifies as recurrent themes in complaints: authorised push fraud (where customers are persuaded to authorise fraudulent payments), issues around closure of accounts, pension plan transfers, guidance on suitability of investments and home insurance complaints.
