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What Have You Been Complaining About?

Posted on: July 28th, 2014 | Author:

What Have You Been Complaining About?

Mobile Phone Insurance Complaints

With most of the UK population owning or using a mobile phone its fair to say that we’d be lost without them. So it’s not surprising that 10 million of us have taken out mobile phone insurance to protect us if our mobile gets lost, stolen or damaged.

However investigations by the Financial Conduct Authority (FCA) have revealed that we might not be getting a fair deal when it comes to insurance and many of us don’t have the cover we thought.

Exclusions in the insurance policy that were not explained at the point of sale have lead to consumers complaining about their insurance. The Financial Ombudsman reported that mobile phone insurance has the highest uphold rate of any product that they deal with, surely this highlights that something is not right?

“The majority of products covered loss, but in practice did not cover instances where the customer accidentally left their phone unattended somewhere. Customers expect to be covered for this type of loss”

Financial Conduct Authority (FCA)

In July 2013 Administration Services Limited (PAS) who deals with complaints for phones 4 u was fined £2.8 million for poor practices, these included;

  • Unclear and unfair terms and conditions
  • Complaints were not investigated properly
  • Poor record keeping

Read the FCA’s full report into the Mobile Phone Insurance Market

Payday Loan Complaints

Payday or short-term loans let you get your hands on cash quickly if your struggling before your next pay day, although the fee’s can seem reasonable the APR’s can be shocking.

The average payday  loan value is  £265, borrowed over 30 days with 28% of the loans issued rolled over at least once.

“We are concerned that borrowers are not getting a balanced picture of the costs and risks of taking out a payday loan “

Office of Fair Trading

The payday lending market is currently worth an estimated £2 billion, but complaints regarding the sale of these loans have started to rise with the Financial Ombudsman reporting a 75% increase in complaints.

Many of the complaints are regarding the lenders use of ‘continuous payment authority’ which allows the lender to collect payments directly from the consumers bank account. Consumers have complained that the payday lender took payments unexpectedly or attempted to repeatedly take payment even though the consumers has explained that they do not have the money. Other complaints have been around unaffordable lending where no affordability check was done.

The most common problems with payday lending include:

  • Consumers experiencing financial difficulty and didn’t feel they have been treated fairly
  • Consumers who believe the lender had used their card details to take payments without their permission
  • Consumers who had fallen behind with his repayments and believe his lender had mistakenly registered multiple loans on his credit file.

Mis-sold Packaged Bank Accounts

Over 10 million UK adults have a Packaged Bank Account, also known as a paid for account or bundle bank account.

A Packaged Bank Account usually comes with a range of benefits such as travel and mobile phone insurance, extended warranties, car breakdown cover and more.

“31% of those with a Packaged Bank Account said sales staff made account holders feel that they had no other option but to get a fee-paying account”


However many customers with these bank accounts have started to complain that they were mis-sold, complaints include;

  • Accounts upgraded without the customers knowledge
  • Monthly fee increased without the customers knowledge
  • Customers unable to claim on the benefits E.g Age restrictions on policy
  • Customer did not know that there were free alternatives
  • Customer felt pressurised into taking out a packaged bank account

Crystal Legal Services have investigated 100’s of Mis-sold Packed Bank Account complaints and have found that 50% of the account we investigate have been mis-sold. Recent reports by consumer group which? have revealed that consumers could be wasting around £240-£320 million pounds every year.

Visit our Mis-sold Packaged Bank Account section for more information