The Financial Ombudsman says financial disputes between consumers and companies hit a record high in the 12 months to March.

It settled 518,778 disputes during that time, more than twice last year’s figure, and 58 per cent of cases were settled in favour of the consumer.

The Financial Ombudsman is an appeal body for consumers who feel a claim against a financial company has been rejected unfairly.

The rise in numbers was driven by cases relating to payment protection insurance (PPI) which cost the industry billions in compensation claims.

PPI claims accounted for three-quarters of the total, up six per cent to just shy of 400,000.

"It's been an unprecedented twelve months for the ombudsman by anyone's standards," said the chief ombudsman Tony Boorman. "Complaints continued at record levels - and we resolved over half a million cases during the year."