A total of 3.32 million complaints were recorded by firms in the first half of 2017, an increase from 3.04 million in the second half of 2016, the FCA has said.

"Since June 2016, firms have been required to report data to us in a new way which has increased the number of complaints reported," the regulator stated.

Forty-three per cent of all complaints made during the first half of 2017 were related to advising, selling and arranging, compared to 59% in the first half of 2016. While general administration and customer service accounted for 27% of all complaints in the first half of 2016, they now account for 38% of all complaints.

Payment protection insurance (PPI) continues to be the most complained about product making up a third of all complaints in the first half of 2017. The total number of PPI complaints increased by 24% from 899,000 to 1.11 million. Excluding PPI, the number of complaints was 2.21 million.

The total redress paid to consumers was £1.99bn in the first half of 2017. Eighty-two per cent of the total redress payments are for PPI complaints.

FCA executive director of strategy and competition Christopher Woolard stated: “We now require firms to report all complaints which gives us a fuller picture of where the industry might not be meeting customer needs. But even allowing for the change in reporting rules, and some progress made, the numbers are still significant.

“Firms need to do all they can to reduce complaints and ensure that they are working in the best interests of consumers.”

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