Press Release - 15 January 2009

Increase of 36% as 5,950 complaints received against financial institutions in 2008; €1m loss by a credit union merits €500,000 award but credit union’s investment committee and broker criticised; old aged pensioner’s €7,500 savings cleaned out by irregular ATM withdrawals; house property deeds lost for over 20 years; €1m farmer’s investment loss not upheld; honeymoon couple victims of €6,700 credit card fraud while a gullible solicitor was defrauded when a year old cheque of €111,000 was honoured by a bank.

Financial Services Ombudsman, Joe Meade, today on his website

http://www.financialombudsman.ie/case-studies/

gives details of 11 significant findings made in the banking and investment area since July 2008 - 9 upheld and the other 2 rejected. The matters comprise

• Credit Union's worthless investment of €1m merits €500,000 award but Union and Investment broker severely criticised
• €1m investment in bond by farmer was worthless but complaint not upheld
• €7,500 of entire savings lost from old age pensioner's bank account by fraudulent ATM withdrawals
• €70,000 compensation for bad investment advice loss of €110,000
• Misplaced house title deeds over 20 years - €47,000 in compensation as well as refund of €20,000 incurred in legal fees
• Overdraft facility not requested by person receiving ‘Social Welfare' benefit who then got into debt - 60% of €600 overdrawn refunded
• Incorrect bogus non resident account notification by bank which led to a subsequent tax settlement of €200,000 merits only €12,500 award
• €74,000 directed to be refunded to gullible solicitor who was defrauded when year old cheque for €111,000 was cashed and paid out on by a bank
• €60, 000 losses on CFD stock broking account not upheld
• €1,850 repaid for €4,300 of credit and debit card transactions in a foreign nightclub
• Review of transcript of phone call regarding unauthorised credit card transactions of €6,700 while on honeymoon results in full refund

Workload

During 2008, 5,950 (4,374 in 2007) complaints were received. That was an increase of 36% over 2007 with 2,620 (1,929 in 2007) against credit institutions and 3,330 (2,445 in 2007) against the insurance sector. Complaints about investment issues alone surged from 400 in 2007 to 1034. Since the office started on 1 April 2005 over 17,400 complaints have been received and 15,100 of these have been resolved; in the final quarter of 2008 alone some 1,600 complaints were received. 62% of resolved cases were to the benefit of the customer.
Detailed make up of these figures are also published on the website at http://www.financialombudsman.ie/case-studies/trends.asp

Further information
Conor Cashman (6318575); Diarmuid Byrne (6318561); or Sylvia Costello (6318556)
Financial Services Ombudsman, 3rd Floor, Lincoln House, Lincoln Place, Dublin 2.
Lo call 1890 88 20 90; Tel: 01-6620899; Fax 01-6620890
Email enquiries@financialombudsman.ie Website www.financialombudsman.ie

Note for media
As an independent statutory office-established on 1 April 2005-the Financial Services Ombudsman ensures that unresolved complaints from customers of financial service providers are mediated, investigated and adjudicated on in an impartial and independent manner. He can in addition to rectifying matters make compensation awards up to €250,000 which are binding on both parties subject only to appeal to the High Court.