enquiries
Enquiries to our ‘front-line’ customer contact division, by phone and in writing, have increased significantly during the year. We have maintained our service standards by making use of resource planning software and by recruiting additional staff.
| |
actual 2004/05 |
budget 2005/06 |
forecast 2005/06 |
budget 2006/07 |
phone calls to our enquiry line |
330,000 |
340,000 |
365,000 |
370,000 |
written enquiries |
285,000 |
275,000 |
317,000 |
320,000 |
|
 |
total |
615,000 |
615,000 |
682,000 |
690,000 |
Our customer contact division plays an important role in the early resolution of complaints. At present it is resolving an average of more than 200 complaints per week at this earliest stage. These would otherwise have gone on to be ‘full-blown’ cases and to incur a case fee. Many of these are mortgage endowment complaints and we aim to increase still further the number of mortgage endowment complaints we resolve at this early stage.
new cases
For the reasons outlined in chapter 2 – a demand-led service – forecasting complaint numbers is an inexact science. The total number of new cases is comparatively stable at present and we expect this to continue through 2006/07. We would welcome any comments on our working assumptions.
|
actual 2004/05 |
forecast 2005/06 |
budget 2006/07 |
estimate 2007/08 |
types of complaint |
|
|
|
|
endowments linked to mortgages |
69,737 |
70,000 |
60,000 |
40,000 |
pensions |
4,696 |
5,000 |
4,000 |
4,000 |
single premium investment bonds |
6,281 |
5,000 |
3,500 |
3,000 |
other investments |
8,274 |
7,500 |
7,000 |
7,500 |
banking and loans |
7,490 |
9,500 |
10,500 |
10,500 |
mortgages |
3,001 |
4,000 |
4,000 |
4,000 |
insurance |
11,484 |
14,000 |
13,500 |
13,500 |
contingency |
- |
- |
2,500 |
5,000 |
|
|
total |
110,963 |
115,000 |
105,000 |
87,500 |
As explained in last year’s budget consultation, because of the nature and scale of the complaints we receive about mortgage endowments, we treat them as a separate category and set different service standards for them.
mortgage endowment cases
We have assumed that the number of cases about mortgage endowments will reduce slightly in 2006/07, mainly because of an increase in the proportion of complaints that are obviously time-barred. However there is still the possibility of a surge of cases from consumers whose cases are about to be time-barred.
Following regulatory action by the FSA, we have seen a reduction in the number of mortgage endowment cases brought to us involving larger firms. However, an increase in the number of cases involving smaller firms has resulted in the overall number of mortgage endowment cases reaching us remaining largely the same. This has an effect on productivity, as there can be economies of scale in dealing with batches of complaints from larger firms.
Currently, the number of cases about mortgage endowments that we resolve and close in a week matches the number of cases we receive. On the basis of our current assumptions about new mortgage endowment cases in 2006/07, we expect during that year to resolve and close more cases than we receive. This should lead to a steady reduction of work-in-progress.
other cases
We have assumed that cases about other products and services are likely to continue at about the current level. Within the total, the proportion of investment cases has reduced – although the complexity of some of the products involved has increased and the proportion of banking and insurance cases has grown.
The number of cases we resolve and close each week already routinely exceeds the number of cases we receive. We expect the overall reduction in work-in-progress to continue.
workload plans
| |
actual 2004/05 |
forecast 2005/06 |
budget 2006/07 |
estimate 2007/08 |
opening work-in-progress |
|
|
|
|
mortgage endowment complaints |
26,056 |
46,924 |
47,924 |
31,924 |
other complaints |
20,645 |
19,832 |
17,832 |
13,832 |
|
|
total |
46,701 |
66,756 |
65,756 |
45,756 |
|
|
|
|
|
new complaints |
|
|
|
|
mortgage endowment complaints |
69,737 |
70,000 |
60,000 |
40,000 |
other complaints |
41,226 |
45,000 |
45,000 |
47,500 |
|
|
total |
110,963 |
115,000 |
105,000 |
87,500 |
|
|
|
|
|
cases resolved |
|
|
|
|
mortgage endowment complaints |
48,869 |
69,000 |
76,000 |
58,500 |
other complaints |
42,039 |
47,000 |
49,000 |
48,000 |
|
|
total |
90,908 |
116,000 |
125,000 |
106,500 |
|
|
|
|
|
closing work-in-progress |
|
|
|
|
mortgage endowment complaints |
46,924 |
47,924 |
31,924 |
13,424 |
other complaints |
19,832 |
17,832 |
13,832 |
13,332 |
|
|
total |
66,756 |
65,756 |
45,756 |
26,756 |
|
|
|
|
|
work in hand (weeks) |
|
|
|
|
mortgage endowment complaints |
31.2 |
36.6 |
22.5 |
12.7 |
other complaints |
24.3 |
17.3 |
14.2 |
14.2 |
|
|
total |
30.7 |
27.8 |
19.2 |
13.4 |
|
|
|
|
|
productivity |
|
|
|
|
mortgage endowment complaints |
6.1 |
5.3 |
5.2 |
5.0 |
other complaints |
3.4 |
3.4 |
3.5 |
3.7 |
|
|
total |
4.4 |
4.3 |
4.4 |
4.3 |
|
|
|
|
|
closed within 3 months |
|
|
|
|
mortgage endowment complaints |
20% |
15% |
20% |
|
other complaints |
42% |
35% |
45% |
|
|
|
total |
32% |
25% |
30% |
45% |
|
|
|
|
|
closed within 6 months |
|
|
|
|
mortgage endowment complaints |
55% |
40% |
45% |
|
other complaints |
72% |
70% |
80% |
|
|
|
total |
64% |
50% |
60% |
75% |
|
|
|
|
|
closed within 9 months |
|
|
|
|
mortgage endowment complaints |
75% |
65% |
70% |
|
other complaints |
82% |
85% |
85% |
|
|
|
total |
80% |
75% |
80% |
90% |
|
|
|
|
|
closed within 12 months |
|
|
|
|
mortgage endowment complaints |
92% |
80% |
90% |
|
other complaints |
88% |
90% |
90% |
|
|
|
total |
90% |
85% |
90% |
95% |
|