The number of banking and credit complaints is rising, according to new figures. The Financial Ombudsman Service (FOS) says mortgage and home finance complaints also up in the first half of this year, as well as banking and credit complaints – with fraud and scam cases to blame for half of the increase in claims in that sector.
Overall, 93,114 complaints were received by the FOS between January 1 and June 30 2023, increasing from 79,921 complaints in the last six months of 2022. The FOS received 56,690 new banking and credit complaints in the first half of 2023, up from 50,346 in the second half of 2022.
The FOS also received 24,496 new general insurance/pure protection complaints in the first half of this year, compared with 19,346 in the second half of 2022. There were also 5,002 new mortgages and home finance complaints the first half of 2023, compared with 4,160 in the second half of 2022; and 4,189 new decumulation life and pension complaints in the first half of 2023, increasing from 3,842 in the second half of 2022.
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The FOS also recorded 2,593 new complaints about investments in the first half of this year, compared with 2,227 in the second half of 2022. Abby Thomas, chief executive and chief ombudsman at the FOS, said: “Financial complaints have risen again, with cases particularly increasing in the banking and insurance sectors. Given the economic challenges people are facing, it’s more important than ever that they feel protected. Whatever their grievance, consumers should expect fair and reasonable treatment from their provider. If consumers don’t feel that’s the case, they can ask our free, independent service to investigate their complaint.”
A spokesperson for the Association of British Insurers (ABI) said: “We’re concerned to see these latest complaints figures from the Financial Ombudsman Service. Insurers work hard to process claims as quickly and efficiently as possible whilst managing challenges beyond their control that can impact on timings, such as delays to car repairs. However, clear and timely communication is vital to support the customer throughout any claim. We’ll work with our members and the FOS to understand where improvements can be made, in particular any learnings from the complaints that have been upheld.”
A spokesperson for trade association UK Finance said: “The financial services industry is committed to providing quality customer service and working to ensure customers are supported during the ongoing cost-of-living challenges. And when things do go wrong, firms are resolutely committed to putting them right as quickly as possible, and most issues are resolved with a customer directly. Where customers aren’t satisfied, they can complain to the Financial Ombudsman Service, who will independently look into the case and reach a decision.”
Rocio Concha, Which? director of policy and advocacy, said: “It is very concerning to see the ombudsman dealing with such a significant increase in complaints – especially at a time when consumers are battling the worst cost-of-living crisis in decades.” She added: “A significant increase in the number of complaints made about fraud is troubling and this process can exacerbate the already traumatic experience of being scammed for victims.
