Break fees a pain

Disputes over credit and referred to the Financial Ombudsman Service increased by 36 per cent to 6700 in the year to June 2009 the annual report for the scheme shows.

Within this category almost all disputes are over consumer credit, including home loans, with a few over business credit and a handful relating to margin loans

The biggest consumer beef was over break fees on fixed rate home loans and also business loans.

Disputes over deposit products fell 19 per cent to 1300, though this may largely be due to the reduced availability of safe custody, a fertile area for rows between banks and customers over lost contents.

Disputes over payments increased eight per cent to 1500. There was also a rise of 68 per cewnt in disputes about investments.

Among systemic issues highlighted in the annual report was the work of one bank that provided 3400 incorrect credit listings to Veda Advantage and Dun & Bradstreet.

Another bank refused partial refunds on lenders mortgage insurance to around 100 customers in breach of their own guidelines.