Consumers lodged more than 305,000 complaints about financial products with the Financial Ombudsman Service (FOS) in the last financial year, new figures have revealed.

The number of complaints needing intervention from the Ombudsman is now at its highest level in six years. The last time the FOS received more complaints was during the PPI issue in 2018/19, when it received over 388,000.

According to the latest annual report from the FOS, covering the 12 months to 31 March 2025, concerns around unaffordable lending have helped to drive complaints, as well as issues surrounding motor finance.

The FOS observed significant rises across most of its main product complaint areas – with some issues and products at their highest ever recorded level. This included complaints about motor finance commission, fraud and scams, and credit cards.

Interim chief ombudsman at the FOS, James Dipple-Johnstone, said: “Financial services have evolved significantly since we were set up 25 years ago. New financial products, the digitalisation of services and an increase in fraud and scams mean that we now see high levels of demand and an increasing number of complex cases.”

The FOS also revealed that its 2024/25 caseload was a 54% increase when compared to the previous financial year, which saw over 198,000 complaints.

Around half of the 305,000 complaints in 2024/25 were brought by professional representatives, compared to 25% brought by professional representatives during 2023/24. This growth was mainly focused on credit affordability and car finance complaints, the FOS said.

“Although we resolved thousands of cases last year, we know there’s more to do which is why we are driving forward ambitious plans to transform our service,” added interim chief executive at the FOS, Jenny Simmonds.

“We are modernising our ways of working, investing in new tools and technologies, and building flexibility into our workforce.

“This modernisation programme, alongside reform to the wider dispute resolution system, will create a trusted and effective financial ombudsman, which in turn enables predictability and the confidence to support a strong economy.”

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