The Financial Ombudsman Service has said the number of financial complaints received in the first half of 2024 rose by over 40%.
FOS received a total of 133,019 complaints between 1 January and 30 June, compared to 93,114 in the same period last year.
The complaints were made against 242 businesses including banks, insurance and investment firms.
Banking continues to top the tables, with 101,031 banking and credit complaints registered in the first six months of 2024.
These include disputes about credit cards, unaffordable lending and car finance, as well as fraud and scams.
FOS said over half of all banking and credit complaints were brought by professional representatives.
Other sectors that received a large number of complaints include general insurance/pure protection (22,489), decumulation life and pension (3,369), and investments (2,305).
FOS upheld 35% of complaints in favour of the consumer, compared to 37% in the first half of 2023.
FOS chief executive and chief ombudsman, Abby Thomas, 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.
“While professional representatives have an important role to play, they must ensure that their cases are well evidenced and have merit.
“If people don’t feel they’ve been treated fairly by their financial provider, they can come directly to our service and we’ll see if we can help.”
Lead consultant at wealth management consultancy firm Simplify Consulting, Dom House, described the complaints data as “extremely disappointing”.
“Complaint volumes across all FCA-regulated firms have continued to increase over the last 10 years but now, around 18 months into the Consumer Duty, it seems the industry is still 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 the 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.”
The number of complaints has risen, but only 35% are upheld.
Is this due to unreasonable customer expectations or activity by CMC’s?.
It may be pedantic to mention, but the FOS doesn’t receive complaints. Rather, complaints on which the complainant has received from the party originally complained against what s/he considers to be an unsatisfactory response or verdict, the matter may be referred to the FOS in its capacity as a supposedly impartial higher authority. If the FOS finds in favour of the complainant, then the party complained against must normally abide by that judgement (though I believe there is a right of appeal).
As I understand it is the financial services Aunt Sally that seems to come out on top. SJP has received 485 complaints in the first half of the year – nearly double from the previous half.