| |
|
| complaint trends |
| |
new complaints |
| 3.1 |
Our working assumption for 2005/06 is that the overall number of
complaints will be 6% higher than in 2004/05. This is expected to result
from: a continued increase in mortgage endowment cases, the extension
of our jurisdiction to cover mortgage and general insurance brokers, and
contingency for any potential new issue that might arise and generate
complaints during the year. |
| 3.2 |
Predicting the volume of new complaints is an inexact science. A wide
range of factors, including the state of the economy, media coverage,
and the attitude of consumers and firms, can contribute to the overall
level of complaints. As in the past, we would be particularly interested in
any feedback from firms or consumer bodies on the assumptions we
have made about likely complaint numbers. |
| 3.3 |
Issues that may have an impact on the numbers of new complaints
include the following. |
|
mortgage endowments |
|
The number of complaints next year will be affected by the recent FSA
requirement for firms to send out “red” re-projection letters that clearly
spell out the date after which any complaint that the individual may wish
to make will be “time-barred”. The extent to which this may prompt
higher numbers of consumers to complain is unknown. |
|
complaints about matters other than mortgage endowments |
|
We expect the number of these cases to continue downwards and, in
particular, we expect to receive fewer complaints about “splits” and
“precipice bonds”. Any increase in complaint numbers is expected to
come either from the expansion of our compulsory jurisdiction to cover
complaints about insurance and mortgage intermediaries, or from some
new issue that might arise and generate complaints during 2005/06. |
|
insurance and mortgage intermediaries |
|
We have only very recently begun to cover complaints about these firms
and, following discussions with the relevant trade bodies, we have
assumed that these firms will generate a total of 5,000 new complaints
for 2005/06. However, this figure is based on fairly broad assumptions
and we intend to wait for a year to see the actual trend. |
|
contingency for new complaints |
|
As has become our custom, we have allowed for 5,000 new complaints
that could be generated by some new issue arising in 2005/06.
We regularly discuss any potential new areas for complaints with industry
and consumer bodies and with the FSA. |
|
|
| customer contact division |
| 3.4 |
In 2004/05, phone and written contacts to the customer contact division,
our initial point of contact for consumers, have increased by nearly 20%
over the previous year. However, in line with our assumptions on new
complaints, we do not expect these numbers to rise in 2005/06. |
| |
| |
actual
2003/04 |
forecast
2004/05 |
budget
2005/06 |
| calls to our enquiry line (0845 080 1800) |
291,893 |
336,000 |
340,000 |
| new written enquiries |
149,569 |
188,000 |
190,000 |
| total |
441,462 |
524,000 |
530,000 |
|
| |
|
| 3.5 |
We are currently receiving approximately 6,000 phone calls and
letters a week to our front-line customer contact division – as part of the
overall workload of 5,000 emails and 2,500 items of post that the
ombudsman service as a whole deals with each day. As expected, the
majority of these enquiries relate to mortgage endowments. |
| 3.6 |
Despite the increase in volumes, we were able to achieve our targets for
timeliness in dealing with these front-line enquiries, as a result of
resource-planning software and continued staff training and development. |
| 3.7 |
As we noted in para 2.5, our customer contact division plays an important
role in the early resolution of complaints. When we are able to resolve
complaints at an early stage, avoiding the need to pass them on for
further, more detailed work by our case-handling teams, then the firms
involved are not charged a case fee. At present, we are resolving over 300
potential complaints a week in our customer contact division, 80% of
which relate to mortgage endowments. |
| |
|
| analysis of new complaints |
| 3.8 |
As mentioned previously, in the year 2005/06 we are assuming a 6% increase on the number of new complaints we received in 2004/05. However, this is highly dependent on the volume of mortgage endowment complaints. Looking forward to 2006/07, we expect to see a fall in the number of new mortgage endowment complaints as a result of an increasing number of consumers having their complaints "time-barred". However, this may be offset to some extent by the extension of our jurisdiction to cover complaints about consumer credit firms. |
| |
| type of complaint |
actual 2003/04 |
forecast 2004/05 |
budget
2005/06 |
plan
2006/07 |
| endowment policies linked to mortgages |
51,917
|
67,000
|
70,000
|
42,000
|
| single premium investment bonds |
7,222 |
5,500 |
3,000 |
1,500 |
| pension products |
5,303 |
3,900 |
4,000 |
4,000 |
| mortgage loans |
3,220 |
3,000 |
3,000 |
3,000 |
| split capital investment trusts |
1,673 |
1,000 |
0 |
0 |
| non-mortgage endowments/whole-of-life policies |
5,442 |
4,000 |
4,000 |
4,000 |
| motor insurance |
2,727 |
2,500 |
2,500 |
2,500 |
| current accounts |
2,106 |
2,500 |
2,500 |
2,500 |
| buildings/contents insurance |
2,703 |
2,500 |
2,500 |
2,500 |
| travel insurance |
1,453 |
1,500 |
1,500 |
1,500 |
| mortgage and general insurance intermediaries |
0 |
0 |
5,000 |
5,000 |
| consumer credit |
0 |
0 |
0 |
2,500 |
| other products |
14,135 |
14,600 |
12,000 |
13,500 |
| contingency for other (as yet unidentified) area of complaint |
0 |
0 |
5,000 |
5,000 |
| total |
97,901 |
108,000 |
115,000 |
89,500 |
|
| workload plans |
| 3.9 |
| |
actual
2003/04 |
forecast
2004/05 |
budget
2005/06 |
plan
2006/07 |
| opening work-in-progress |
|
|
|
|
| mortgage endowment complaints |
6,078 |
26,056 |
44,056 |
45,056 |
| other complaints |
19,426 |
20,645 |
17,645 |
15,645 |
| total |
25,504 |
46,701 |
61,701 |
60,701 |
| |
|
|
|
|
new complaints
|
|
|
|
|
| mortgage endowment complaints |
51,917 |
67,000 |
70,000 |
42,000 |
| other complaints |
45,984 |
41,000 |
45,000 |
47,500 |
| total |
97,901 |
108,000 |
115,000 |
89,500 |
| |
|
|
|
|
case closures
|
|
|
|
|
| mortgage endowment complaints |
31,939 |
49,000 |
69,000 |
65,000 |
| other complaints |
44,765 |
44,000 |
47,000 |
49,000 |
| total |
76,704 |
93,000 |
116,000 |
114,000 |
| |
|
|
|
|
closing work-in-progress
|
|
|
|
|
mortgage endowment complaints
|
26,056 |
44,056 |
45,056 |
22,056 |
other complaints
|
20,645 |
17,645 |
15,645 |
14,145 |
| total |
46,701 |
61,701 |
60,701 |
36,201 |
| |
|
|
|
|
work in hand (weeks)
|
|
|
|
|
mortgage endowment complaints
|
24.5 |
35.7 |
34.0 |
17.7 |
other complaints
|
23.5 |
18.2 |
17.3 |
15.0 |
| total |
26.1 |
28.3 |
27.0 |
16.5 |
| |
|
|
|
|
productivity
|
|
|
|
|
mortgage endowment complaints
|
7.6 |
6.2 |
5.3 |
5.0 |
other complaints
|
3.9 |
3.3 |
3.4 |
3.8 |
| total |
4.9 |
4.4 |
4.3 |
4.4 |
| |
|
|
|
|
closed within 3 months
|
|
|
|
|
mortgage endowment complaints
|
|
17% |
10% |
10% |
other complaints
|
|
45% |
45% |
45% |
| total |
48% |
30% |
25% |
25% |
| |
|
|
|
|
closed within 6 months
|
|
|
|
|
mortgage endowment complaints
|
|
44% |
20% |
30% |
other complaints
|
|
70% |
80% |
80% |
| total |
80% |
55% |
45% |
50% |
| |
|
|
|
|
closed within 9 months
|
|
|
|
|
mortgage endowment complaints
|
|
75% |
60% |
70% |
other complaints
|
|
85% |
90% |
90% |
| total |
95% |
80% |
75% |
80% |
| |
|
|
|
|
closed within 12 months
|
|
|
|
|
| mortgage endowment complaints |
|
92% |
80% |
90% |
| other complaints |
|
90% |
95% |
95% |
| total |
96% |
90% |
85% |
90% |
|
|
