Overloaded ombudsman warns complaints could take year to be resolved

In the year to March 2005 it budgeted to deal with 35,000 endowment cases but said yesterday the true number was likely to reach 67,000.

A year ago cases typically took four to six months to resolve but are now taking between six and nine months on average, with many stretching out to more than a year. "It will probably get worse before it gets better," said service spokesman David Cresswell.

The Ombudsman hired more than 200 new adjudicators in 2004, taking the total to 970, but still fell behind targets on dealing with complaints. It had expected endowment complaints to level off in 2004 but now forecasts it may be 2007 before they begin to tail off.

The Ombudsman, Walter Merricks, lashed out at the endowment providers failing to cooperate with adjudicators, often taking months to supply files and evidence.

He said there are about 10 recalcitrant companies that almost automatically reject consumer complaints, which then fall to the Ombudsman service to resolve.

Mr Cresswell said: "It's not just the volume of the cases we are receiving but the low quality of the cases. When the consumer first complains, they are supposed to be looked at within eight weeks by a senior manager at the insurance company. Only after that does the consumer have the right to take the case to the Ombudsman. Unfortunately we are finding that almost nothing has been done by the insurance company to investigate the case."

The Ombudsman has passed the names of the companies to the Financial Services Authority, which can use its powers to levy fines on companies failing to follow complaints procedures.

Jan 15, 2005
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