Banks and insurers face serious criticism over an alarming 24 per cent rise in the number of customer complaints they are passing on to the Financial Ombudsman. The Financial Ombudsman Service – which steps in when customers are not happy with how banks have dealt with their complaints – was deluged with new cases between July and September.

A spokesman said the tough economic environment has led to more people to scrutinising their finances and unearthing horror stories. In particular, motor insurance, day-to-day banking, and debt-related gripes leapt as Britons battled to save the pennies during a nationwide income squeeze. The 24 per cent overall increase excluded complaints over mis-sold payment protection insurance (PPI), which is its own can of worms.
'People are watching their money more closely in the current economic environment,' the FOS spokesman said.

'There's been a noticeable increase in complaints around credit difficulties, as well as insurance where people are more....Read more here--> Complaints against banks soar by a massive 24 per cent rise as squeezed customers examine the small print