The Financial Ombudsman Service (FOS) has revealed it handled nearly 800,000 consumer enquiries last year and a record 127,471 new complaints.

Among the 789,877 enquiries for the year, FOS saw a 34 per cent rise in complaints about mortgages, credit cards and consumer credit, while insurance complaints soared 84 per cent.

Unsecured loan complaints increased 44 per cent and FOS said the range of credit it now covers extends to debt collectors and hire-purchase firms.

The ombudsman resolved 113,949 disputes, representing a 14 per cent rise on last year, leading to compensation for consumers in 57 per cent of cases.

Calls are still flooding in over payment insurance (PPI) and FOS revealed these complaints trebled on last year. The nature of these still focussed on the mis-selling of the product and the majority had been sold with a single premium on the back of an unsecured or second charge loan. In the report chief ombudsman Walter Merricks (pictured) also reveals that there had also been an increase in the amount of disputes where PPI had been sold alongside a credit card.

Around 52 per cent of the total number of cases the ombudsman dealt with related to six of the UK’s largest financial services groups – broadly in proportion to the amount of business these groups as a whole carry out with consumers in the UK.

Sir Christopher Kelly, chairman of FOS, said: "The financial world is a very different place now from a year ago and the ombudsman, like everyone else, has been affected by the economic turmoil. As businesses tighten their belts – and the credit crunch leads to increased financial difficulty for many consumers – we are gearing up to deal with further volatility in complaint volumes."

FOS stated it has received a number of complaints from consumers who believed their loan agreements may be unenforceable by law.