The number of complaints to the national independent dispute resolution service for banking services and investment consumers has more than doubled in two years, the Ombudsman for Banking Services and Investments reported on Wednesday.

In fiscal 2008, the office opened 670 cases, a 43% jump from 468 files opened in 2007. In 2006, the ombudsman received 328 complaints.

The dispute resolution service reviews unresolved disputes between customers and more than 600 financial institutions, including domestic and foreign banks, investment dealers, trust companies, mutual fund dealers, credit unions and scholarship trust plan dealers.

“Increases were experienced in both banking services and investment files,” said ombudsman David Agnew. He said the increase reflects greater awareness of the ombudsman’s services, which is partially a result of firms communicating this option to customers.

“However, we know that we and our stakeholders, including the industry, can do a better job of making sure every consumer who has an unresolved complaint is aware of OBSI. That’s particularly important in these turbulent economic times,” Agnew said.

In the investment realm, suitability complaints dominate the files investigated. Suitability issues arise when consumers make a complaint about a mismatch between their investment objectives and needs, and the securities recommended or purchased for them by their advisor.

In banking services, loans and transaction accounts were the leading products in the complaint files investigated.

In 2008, OBSI closed 93% of its files within 180 days. The ombudsman has a service standard of closing at least 80% of files within 180 days.

Throughout the year, OBSI facilitated settlements involving compensation for clients in 91 cases and made 64 recommendations for compensation after doing a full investigation. All of the ombudsman’s recommendations were accepted by firms in 2008. In 103 investigation files, OBSI upheld the firm’s position.

In the year ahead, a high volume of complaints is expected to continue. “With the volatility of the markets, and the downturn in the economy, we expect a busy 2009,” said Agnew.

IE