New research has revealed 70% of financial companies see ‘increased press/media attention’ as the main reason for an increase in complaints over the last five years.
A ‘rise in the profile of claims management companies’ followed close behind with 66% in Hazell Carr’s survey of complaint handling specialists within UK financial services organisations.
Additionally, the research also showed that 100% of respondants believed there has been a cultural shift to a complaints culture.
Susan Bartlett, director at Hazell Carr, said: “Thoroughly investigating complaints can be a time-consuming process. If not properly managed, the current surge in complaints could lead to an increase in processing times and a reduction in case quality.
“Companies are in an invidious position, as rectifying complaints accurately is essential, but the rapid rise of claims management companies that are urging more individuals to complain for financial gain is also costing the UK public and private sectors millions of pounds.”
According to figures from the Financial Services Authority (FSA), complaint handling cost UK businesses more than £2.6bn in 2011 in redress alone.