COMMENTARY ON CREDIT DISPUTES

Philip Field - Ombudsman Banking & Finance, Mutuals

During the year there were 6,731 new disputes relating to credit. This is up 36% on the previous financial year and reflects the deteriorating economic condition of 2008–2009 and the hardship experienced by many consumers.

Of the disputes we received about credit, the most frequently raised cause of dispute (31%) concerned a decision by the financial services provider. The biggest single cause concerned the application of break costs to fixed rate and business loans.

We saw an increasing number of disputes regarding customers experiencing financial difficulty. In addition, we often see disputes where maladministration and financial difficulty are combined i.e. a consumer may have been granted credit which, on a proper assessment they didn’t have the capacity to pay. This leads them to experience financial hardship.

The vast majority (90%) of credit disputes related to credit provided by banks.

See more detail on Credit disputes in the following categories:
 Margin loans and Margin loan by provider
 Business finance and Business finance providers
 Consumer credit and Consumer credit providers