Complaints to Ombudsman reducing
Financial Ombudsman Service (FOS) has finally reported a reduction in disputes after four years of significant increases in the number of complaints.
FOS chief ombudsman Shane Tregillis said the major reason behind the reduction in complaints was a 22 per cent drop in hardship financial disputes.
Most FOS complaints related to home loan repayment and credit disputes however the Ombudsman surmised that a reduction in mortgage pressures due to lower interest rates had played a part in reducing complaints about home loan lenders.
He said there was a significant drop in disputes over payments in relation to natural disasters, such as floods. Disputes over investments also dropped by a quarter.
There was concern by the Ombudsman that low interest rates could cause people to overestimate their borrowing capacities when it came to buying homes.
FOS closed about half of its disputes within 60 days and about 70 per cent of disputes within three months in the financial year to 2013.