Majority of complaints 'backed by FOS'

More than half of people who complained to the Financial Ombudsman Service (FOS) in the past 12 months received some form of compensation.

Some 57 per cent of complaints were successful, with the most common issues involving credit cards, payment protection insurance, loans and consumer credit.

Sir Christopher Kelly, chairman of the Ombudsman service, said the recession was the catalyst behind many of these disputes.

The Ombudsman's annual report also stated that "there is still a widespread problem involving businesses rejecting complaints that they know - or should know - we will uphold".

"This only adds to the inconvenience suffered by consumers," it added.

A record 114,000 disputes were decided by the FOS in the last year, an annual increase of 14 per cent.