How to . . . complain about financial services In the first half of 2012, disgruntled customers in the UK made more than 3.57m complaints to financial services companies, the highest figure ever recorded. Problems relating to payment protection insurance (PPI) still dominate the complaints data but, according to the UK's ombudsman services, Britons are becoming more vocal about problems associated with a range of other financial products and services including portfolio management and personal pensions. But what is the best way to complain? Take the first step The first step in any complaint is to write to the company involved and to make clear exactly what the problem is and what you expect them to do. Keep it short and civil. Dates of purchase and photocopies (never originals) of documents relating to the product should be included along with the time and dates of any telephone or face-to-face meetings related to the complaint. If the company does not respond, write to the head office after a fortnight and send the letter by recorded delivery, so that you have proof of your efforts if your complaint ends up with an independent adjudicator. Call in the ombudsman For most financial problems involving insurance, banking, credit cards and investment, individuals can take their complaint to the Financial Ombudsman Service (FOS) after eight weeks if they are unhappy with how a company has responded to a complaint. Once a complaint is passed to the ombudsman, the company involved is charged a fee, meaning that it is in their interest to resolve issues quickly and not allow a problem to escalate. The ombudsman's job is to settle disputes between UK-based financial companies and clients who think they have been treated badly. It can be contacted by phone (0300 1239 123) or online. PPI gripes likely to continue Banks have begun writing to millions of customers informing them they may have been mis-sold payment protection insurance (PPI). Some commentators believe this could push the eventual cost of the scandal above the estimates provided by banks - which means PPI is likely to continue to dominate complaints sent to financial companies. The Financial Services Authority says that it is now considering whether a time limit should be set on new cases, something that banks have been lobbying for. This means that customers should contact their provider as soon as possible if they believe a policy was mis-sold. PPI was added to millions of personal loans, credit cards and mortgages, sometimes described in paperwork as "ASU" (accident, sickness and unemployment). If a borrower was unaware that this policy was added to their loan, or can prove that they would not have been able to make a claim on it because they were self-employed at the time, for example, there is likely to be a case for complaint. Banks and building societies are required to keep information about loans for six years, so making a claim on a policy sold recently will be easier, but there is no time limit on claims. Large PPI compensation payments of several hundred thousand pounds have recently been made to customers who were sold PPI along with mortgage policies in the mid-1990s. The UK's largest high street banks all claim to have overhauled their complaints procedures in the wake of the PPI scandal and say they have improved their customer service provision. Customers who have problems with an energy company, telephone, mobile phone or broadband provider should also contact the Ombudsman Services which was created by merging the telecoms and energy mediation services. Savers who want to complain about the way their occupational or personal pension schemes are run should contact the Pensions Ombudsman to investigate (0207 630 2200). These services are all free for consumers to use, but time limits apply. Go to the small claims court Small breaches of contract, such as a dispute between a tenant and landlord, can be taken to court as a last resort. The small claims court will deal with disputes up to the sum of £5,000 (or £3,000 in Scotland and £2,000 in Northern Ireland). The process does not involve a solicitor, so costs are low, but it can be months before a judgement is issued. If you lose you are unlikely to be asked to pay for the costs incurred by the other side, but winning a case does not ensure payment from the opposing party either, this may have to be enforced elsewhere. The initial application fee costs between £25 and £100 and applicants may also be charged a court allocation fee of £40 and a hearing fee up to £325 depending on the size of the claim. Citizens Advice Bureau has information on how to make a claim and where to find your nearest county court. Seek compensation Financial mis-selling cases that are resolved by the ombudsman generally lead to repayment of the original sum paid by the customer, plus any interest paid, plus 8 per cent annual interest on top. Sums of money for "inconvenience" are likely to be between £50 and £100, but exceptional compensation can warrant payments of more than £1,000. There are also signs that compensation on offer to investors could become more generous. In January 2013, a High Court judge decided that an investor who accepted the maximum award from the ombudsman after being mis-sold an unregulated collective investment scheme, could still pursue their adviser through the courts. The decision could put an end to compensation payment caps. According to consumer rights groups, it should also give unhappy consumers even more incentive to take action when they believe they have been treated poorly.