UK’s Financial Ombudsman Records 41 New CFD Complaints in Q1

The ombudsman service reported 58 new cases regarding CFDs and 41 enquiries in the period.

The United Kingdom’s Financial Ombudsman Service has published its quarterly complaints data today, revealing an uptick in the number of complaints it received concerning contracts for differences (CFDs).

In the first three months of this financial year, which spans from 1st April 2020 until 30th June this year, the ombudsman service reported 58 new cases regarding CFDs and 41 enquiries for the three month period.

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When it comes to rolling spot foreign exchange (forex), the number of new cases and enquiries were less than CFDs, with both criteria seeing less than 10 cases for the quarter.

Financial Ombudsman Service Received 25 Spread Betting Complaints

For spread betting, the Financial Ombudsman Service received 25 enquiries during the three month period ending on 30th June 2020. From these enquiries, 21 new cases were formed.

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According to data seen by Finance Magnates, the ombudsman also received a number of new enquiries regarding exchange-traded funds. Specifically, the service received 30 new enquiries. However, less than 10 new cases were set in motion during the first quarter.

For the first quarter of the financial year, payment protection insurance (PPI) remained the most complained about product, the Financial Ombudsman Service announced in its statement today.

“PPI continues to be our most complained-about product, although we received around half the complaints we expected to see during this period, and 39% fewer complaints compared to the previous quarter. When the Covid-19 pandemic hit, financial businesses had to focus their resources where they were most needed, meaning that they’re still working through the millions of customer complaints received following the PPI deadline in August 2019,” the Financial Ombudsman Service said.

In the first quarter, the ombudsman received 12 new enquiries relating to corporate bonds. Despite receiving only 12 enquiries, 31 new cases were launched during the period. However, for mini-bonds, less than 10 enquiries were submitted to the service, and there were less than 10 cases in the quarter.

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