UK Financial Ombudsman receives 41 enquiries about CFDs in Q1 2020/21

Maria Nikolova

There were 58 cases related to CFDs in the April-June 2020 quarter, with fewer than 10 cases referred to the Ombudsman.

The UK Financial Ombudsman Service (FOS) today published data showing the number of complaints it received between April and June 2020.

In Q1 2020/21 complaints data shows that FOS received 110,695 new enquiries and 57,509 new complaints between April and June 2020. On average, FOS upheld 32% of the complaints it resolved.

The number of enquiries about contracts for difference (CFDs) in the quarter to end-June 2020 was 41, with the number of new cases related to CFDs at 58. Fewer than 10 cases were referred to the Ombudsman.

Regarding spread betting, there were 25 enquiries in Q1 2020/21 and 21 new cases. As with CFDs, there were fewer than 10 cases referred to the Ombudsman.

FOS received over 270,000 new complaints about financial businesses in the 2019/20 financial year, with PPI remaining the most complained about product, with over 122,000 complaints about PPI received by the service, including a spike in complaints following the FCA’s August 2019 deadline for consumers to complain to businesses about PPI.

There were year-on-year increases in the number of complaints about instalment loans (10,880 complaints received in 2019/20), guarantor loans (1,043 complaints received in 2019/20) and point of sale loans (4,667 complaints received in 2019/20).

Overall in 2019/20 the Financial Ombudsman Service received fewer complaints than in the 2018/19 financial year. This was mainly due to a reduction in the number of complaints about PPI and short-term lending.

FOS handled 1,189 enquiries about securities in 2019/20, down 22% from a year earlier. The enquiries about stockbroking were 956, a decrease of 36% from the previous year.

New cases about derivatives (including spread betting and interest rate hedging) were 222 in 2019/20, a drop of 41% from the previous year.

Ombudsman resolutions of disputes about derivatives amounted to 122, down 26% from a year earlier. The percentage of complaints about derivatives upheld was 24% compared to 18% in the preceding year.

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