Complaints made to the Ombudsman for Credit Institutions, Mr Gerry Murphy, have fallen by 20 per cent this year. The ombudsman's annual report shows there were 1,203 complaints in the year to the end of September 2000, compared to 1,507 in the previous year.

The ombudsman - an independent arbitrator appointed to rule on disputes between banks, building societies and finance houses and their customers - can award up to £30,000 (€38,119) in any particular case. His findings are binding on the credit institution concerned.

Most complaints during the year were settled through the internal complaints procedure of the institution concerned. But 519 cases needed a full inquiry and ruling by the ombudsman. Complaints were upheld in 244 of these cases. A further 30 cases were settled during the investigation or withdrawn by the complainant.

Complaints arising from mortgages formed the largest category as in previous years, followed by those relating to the operation of accounts and lending. The most common grounds for mortgage-related complaints were interest charges, fees and charges, the cost of terminating fixed-rate mortgages, errors in statements and delays in the release of documents of title.

Complaints about investments fell sharply to 80 this year from 138 last year. Typical complaints were about inappropriate or bad advice, inflated claims for expected returns and fees and charges.

The scheme cost £370,000 to run during the year. The funds are provided by the credit institutions in proportion to the size of their customer base. The services of the ombudsman's office are provided free of charge to complainants.