Sipp claims soar by 77%: FOS

Pedro Gonçalves
Sipp claims soar by 77%: FOS

The number of Sipp and pension transfer complaints referred to the Financial Ombudsman Service (FOS) has risen by 77% in the last 12 months.

FOS figures show it handled 521 new Sipp cases between April and June 2017. This has now risen 77% to 922 for the same period in 2018.

In total, the FOS received 678 enquiries around Sipp complaints, rising to 1,107 for the three months to June this year.

Sipp are now the twelfth most complained-about product and Sipp cases also had one of the highest uphold rates in favour of the consumer at 59%.

Pension transfer complaints have also been on the rise and the Ombudsman’s latest data shows this trend continuing.

In Q1 there were 184 new pension transfer cases opened by the FOS with 52 of these going to a final decision. This compares to 124 transfer cases opened in the same quarter last year – a rise of 48%.

Overall, FOS received 107,827 new complaints over the quarter, with payment protection insurance remaining the most complained about product, accounting for 55,223 complaints

While investment Isa complaints did increase from 266 to 418, and cash Isa complaints rose from 133 to 172, there continued to be a fall in annuity complaints, from 227 to 148, and only 19 per cent of those were upheld.

Payday loans were the second most complained-about product.

Payment protection insurance and payday loans, with 55,000 and 11,000 new cases respectively, account for a combined 75% of all new complaints.