The number of complaints received by the Financial Ombudsman Service in the first half of 2024 rose by more than 40 per cent.
Data from the Ombudsman revealed it received a total of 133,019 complaints between January 1 and June 30 2024, compared to 93,114 the same period in 2023.
Banking and credit continued to be the most complained about sector and was the only sector that saw a year-on-year increase in complaints, according to the Fos.
In the first six months of 2024, consumers lodged 101,031 banking and credit complaints including disputes about credit cards, unaffordable lending, car finance as well as fraud and scams.
General insurance and pure protection complaints in the first half of 2024 reached 22,489, representing a decrease from the same period last year when it was 24,496.
There were 3,685 new mortgages and home finance complaints in H1 2024 compared to 5,002 in H1 2023.
Decumulation life and pension complaints also saw a decline from 4,189 recorded in the first half of 2023 to 3,369 in 2024.
The Fos recorded 2,305 new complaints about investments in H1 2024, compared to 2,593 in H1 2023.
Abby Thomas, chief executive and chief ombudsman at the Fos, said: “Businesses should put consumers at the heart of their service but the high level of complaints we receive shows that’s not always the case.
“It’s vital that businesses are open and transparent with their customers, treating them with fairness and understanding.”
According to the data more than half of banking and credit complaints were brought by professional representatives.
By comparison, from January to June 2023, the Fos previously reported that people submitted 56,690 complaints to the Ombudsman, of which a quarter were brought by professional representatives.
“Whilst professional representatives have an important role to play, they must ensure that their cases are well evidenced and have merit,” Thomas added.
Dom House, lead consultant at Simplify Consulting, believed the industry still had to move the dial “significantly” on complaints.
He said: “Firms should now be looking at their complaints data to understand how they can reverse this trend and consider whether the changes they’ve made for consumer duty have had the impact intended.
“Consumers' expectations have been raised as new technology becomes mainstream in the financial services industry and firms need to get a grip by addressing the imbalance between prevention and cure by focusing on the root cause and prevention of complaints before they are raised.”
alina.khan@ft.com
