3 in 4 credit debt disputes 'are upheld'
3 in 4 credit debt disputes 'are upheld'
- Monday, 8 June 2009Some 75 per cent of disputes relating to
credit card debt are upheld, according to figures from the Financial Ombudsman Service (FOS), it has emerged.
The Press and Journal reports the statistics, which indicate a growth in the number of upheld complaints relating to credit debt and other financial services.
credit card debt is a particularly high area for upheld complaints, with three-quarters of consumers receiving the support of the FOS in their cases.
This compares with an overall rate of 57 per cent in the year leading up to the end of March 2009 for all cases handled by the FOS.
However, it is not only credit debt which is exceeding the average rate for upheld disputes.
Even higher is the rate of upheld claims relating to the mis-selling of payment protection insurance (PPI), which has been an area of focus for the Financial Services Authority (FSA) over the past year.
The FSA has already warned financial services providers to no longer add the cost of PPI to the total balance of an individual's loans, as the interest then charged can inflate the cost of the policy unfairly over time.

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