Ireland's Financial Ombudsman Releases Annual Report

by Philip Morton, Investors Offshore.com

17 May 2007

Ireland's Financial Services Ombudsman, Joe Meade, on Tuesday published his 2006 Annual Report.

According to the report, there were 3,800 complaints received last year (an increase of 14% on 2005), 10,100 telephone enquiries, and 64,000 website visitors.

60% of complaints were resolved in the Complainants’ favour, and travel and motor insurance, life assurance, bank accounts, mortgages and credit cards were the major complaint issues.

The Ombudsman expressed concerns regarding inappropriate investment advice to elderly people, and mortgage protection policies that may have been taken out unnecessarily on investment properties.

On the controversial question of ‘naming and shaming’ Mr Meade stated that he considers that his current policy of not naming financial providers is an appropriate one, but as commentators have raised the issue, he considers that a public consultation on the matter would be of value.

If the legislature then decides that he should name offending institutions then he will, being bound by statute, comply. However, he pointed out that if financial service providers are named in cases, then complainants may see their names made public too, which could deter some people with genuine grievances from coming forward.

As an independent statutory office - established on 1 April 2005 - the Financial Services Ombudsman ensures that unresolved complaints from customers of financial service providers are investigated, mediated and adjudicated on fairly. He can make compensation awards up to EUR250,000 which are binding on both parties, subject only to appeal to the High Court.

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