Press Release - 18 September 2008

Irish Consumers Actively Complain about Personal Finance Issues

Irish Consumers Actively Complain about Personal Finance Issues

Irish consumers are registering complaints in increasing numbers when they are unhappy with a financial product or service, or where a complaint has not been satisfactorily resolved.

The Financial Regulator's research1 shows that one in ten consumers felt they had a reason to complain to their providers when they were unhappy with a financial product or service. Almost all of these2 actually followed up with their provider directly. The Financial Services Ombudsman reports a continuing increase of 30% this year in the volume of complaints to approximately 4,100.

Most consumers3 said they have some idea how to make a complaint to a financial services firm. However, more than a quarter4 of consumers said they had no idea about how to make a complaint. The research revealed that those aged 18-20 were least aware of their rights when making a complaint to a financial service firm while this figure decreased to just over 20% for those aged 55-645. The research showed different levels of confidence depending on where people lived. Over a quarter6 of Munster consumers say they feel most confident about making complaints about financial products, compared with only 11% in Dublin, 13% for rest of Leinster and 13% for Connaught/Ulster.

Consumer Director of the Financial Regulator Mary O'Dea said: “Consumers are proactive when it comes to making complaints about personal finances issues. This is encouraging especially when we have introduced requirements under our Consumer Protection Code to ensure that every firm has a complaints procedure in place. But, these findings also show the continued need for consumers to be better informed about how to make a complaint when they are dissatisfied and what to do if their complaint is not resolved to their satisfaction”.

She added, “The first thing for consumers to do if they have a complaint is to contact the financial services firm directly. If they cannot get the complaint resolved there and then, the next step is to make a formal complaint to the firm. Finally, they can refer the complaint to the Financial Services Ombudsman who is responsible for dealing with individual complaints.The Financial Regulator follows up on wider industry issues. This ensures the best possible all-round protection and redress for consumers.”

The Financial Services Ombudsman, Joe Meade said: “The numbers of complaints about financial services firms received and resolved by my office is growing consistently each year. Both consumers and Financial Service Providers are satisfied that my office provides an impartial, independent and cost-free dispute resolution service. The co-operation of both offices will continue to be crucial going forward in achieving the best possible outcome for consumers. While we each have different roles, both are directed at achieving the best environment for consumers to be fairly treated.”

The Financial Regulator has developed online information and a factsheet ‘How to complain', all of which are available from its personal finance website, www.itsyourmoney.ie. Copies are also available by phoning the consumer help-line on lo-call 1890 77 77 77, or by calling into the Consumer Information Centre at 6-8 College Green, Dublin 2. Further information is also available from the Financial Services Ombudsman website www.financialombudsman.ie lo-call 1890 88 20 90 or by calling in to 3rd Floor, Lincoln House, Lincoln Place, Dublin 2.

-Ends-

Media Queries: Jill Forde, Financial Regulator Press Office (01) 4104096 Alison O'Donnell, Financial Regulator Press Office (01) 4104656

Media Queries:Conor Cashman, Financial Services Ombudsman's Office (01) 6318575

Note for Editors:

1. The Financial Capability Study involved face-to-face surveys conducted by an independent research company, among a nationally representative sample of just over 1,500 people. The final results of the survey will be released in December 2008. It will detail a more complete range of findings from the extensive questionnaire, together with a full analysis, commentary and conclusions.

2. 92% of those who felt they had a reason to complain did so to their provider directly.

3.Findings breakdown:

4. 27% said they did not know how to go about making a complaint against a financial services firm.

5. Findings breakdown:

6. 26% of consumers from Munster said they knew exactly what to do to make a complaint.

7. The Financial Regulator was established on 1 May 2003. It is the single regulator for most
financial services in Ireland. Its overall mandate is to:

- Help consumers make informed decisions on their financial affairs in a safe and fair
market; and
- Foster sound, growing and solvent financial institutions which give consumers confidence that their deposits and investments are secure.

The Financial Regulator's consumer information resources are available by logging onto
www.itsyourmoney.ie by calling the consumer help-line on lo-call 1890 77 77 77, or by
dropping into the Information Centre at 6-8 College Green, Dublin 2.

8. The Financial Services Ombudsman (FSO), established with effect from 1 April 2005, deals with individual consumer complaints against financial service providers. It is a free and
independent service for consumers.

9. Both the Financial Regulator and Financial Services Ombudsman established a Memorandum of Understanding in April 2006 (along with the Pensions Ombudsman). The individual roles and responsibilities of both offices are set out in the agreement.

The Financial Regulator seeks to ensure firms comply with the Consumer Protection Code and other codes and laws and provides personal finance information to consumers.