Press Article
Fos in drive to get young to complain
By Joy Dunbar
FinancialAdviser,
Thursday , August 14, 2008
Younger people are proportionally less likely to bring disputes to the Financial Ombudsman Service than those from older age groups according to its research.
It added complaints are usually related to the take up of financial products and young people are less likely to have a wide range of savings, investments and pensions.
According to the Fos, the products they do have are generally quite straight forward, like bank accounts, loans, motor and travel insurance.
It added the investment and pensions disputes it handles are generally from people aged more than 50, and the mortgage-related complaints it sees are mostly from those over 35.
Emma Parker, press officer for the Fos, said that it wanted to raise awareness of all the routes available for people to complain, not just the service itself but also the courts and Citizens Advice.
She said: "Awareness has improved in the last year, but there are less younger people using the service than for other age groups. Young people do not complain as much and some of that is related to the take up of financial products."
She used an example of a 19-year-old single plumber's apprentice who was sold a 10-year with profits endowment with life cover by a financial adviser at a bank. She said that the complaint was upheld as the effect of charges and the cost of life cover had not been brought to his attention.
James Carter, proprietor of London-based adviser Independent James, said: “Younger people have a better understanding of financial services now. Also older people are more likely to have pensions and investments, and are more likely to have a mortgage."