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The Financial Ombudsman is a strange entity in the world of money. For the most part it polarises IFAs (including mortgage advisers) and consumers.

One side bitterly resents the fact they must pay a fee whenever a client makes a complaint (to the extent that some firms have even lodged legal objections). However, the other sees the service as a beacon of hope after they have been frustrated by the way a financial institution has handled their complaint.

If they were forced to pay a fee then many of these often long-running and technical complaints would just fritter away. Justice would not be served.

Complaints to the Financial Ombudsman Service soared by 30 per cent last year. The service received 794,648 consumer inquiries and 123,089 new complaints. The rise reflects both increasing consumer awareness of the service and growing willingness by consumers to fight back in the face of poor customer service and intransigence by some financial firms. In particular banking and mortgage complaints trebled and those specifically about current accounts increased tenfold.

Insurance disputes doubled but mortgage endowment complaints fell as this issue continues to wind down. Many consumers are now running out of time to complain about duff endowments.

Anyone that does not think the ombudsman is a worthwhile service should look at the letters page of any national personal finance section. They are packed with examples of consumers that have done everything they possibly can to get fair treatment, only to have the door firmly slammed in their face. It is only when a journalist takes up the case, bypassing layers of bureaucracy to go straight to head office, that justice is finally served. The same happens when the ombudsman intervenes.

Firms just cannot be trusted to resolve complaints fairly. I know small firms resent the fee they have to pay for a complaint. Frequently this is because they believe the consumers are just trying it on. This is especially the case with endowments where widespread mis-selling led to a situation where anyone who held an endowment - regardless of the fact they may have known the risks involved - tried to get recompense. But let us just stop there. Because there was widespread mis-selling. I am sorry but when there has been an industry failure on this large scale then everyone gets tainted. Don't like it? Well, blame your co-accused, not the jury that finds you at fault.

Newspapers do get complaints about the ombudsman, usually about delays but also disagreeing with an adjudication. But, unless there are very extreme circumstances it is not something we will normally pursue. The ombudsman is the last port of call for consumers that have been wronged. If the service cannot help then there is usually a good reason. Yet it is under attack from many who would like to see the ombudsman take a more legal stance on issues. But this would completely defeat the object of the service. It is the bastion of financial fair play. Its approach is common sense. Maybe that is why so many financial institutions cannot understand the decisions it makes.

Locked in and FSA has the key

The ombudsman's annual figures do show a decline in the volume of mortgage endowment complaints, they have dropped by 70 per cent.

It is inevitable. But it is a touch ironic that this should be revealed just days after Standard Life announced its percentage of payouts would not cover the capital on a home had risen.

The danger is with a fall in complaints the mind will wander away from the continuing misery that is heaped on those with these dreadful policies. Particularly those in zombie funds. Take someone who paid £50 a month over 25 years. After all this time they would get just over £24,000 with Life Association of Scotland or £26,000 with Crusader. These are the worst, but they are not alone. Meanwhile, consumers are locked in to this duff investment performance unable to get out. Thanks again to the FSA.

Back by popular demand?

Apparently, inflation is back. With costs of energy, fuel and shopping spiralling out of control maybe now the Bank of England will realise there is no good capitulating to the whims of housing economists. They have taken their eye of the ball and the economy is now starting to career out of its control.