The second half of 2024 saw a 49% annual increase in the number of complaints to the Financial Ombudsman Service (FOS).
New figures have revealed that a total of 141,846 complaints were received by the FOS between July and December last year, compared to 95,349 complaints in the same period in 2023.
The FOS said the raised levels of complaints were driven by banking fraud, credit affordability disputes and motor finance commission cases.
Around 46% of complaints within the H2 period in 2024 were referred to the Ombudsman by professional representatives. This compared to 22% during the same period in 2023, with the growth mainly focused on credit affordability and car finance complaints.
As a result of the increase in complaints, the FOS said it was working closely with both the Treasury and the Financial Conduct Authority (FCA) to “modernise” the dispute resolution system. It said this would allow the Ombudsman to continue to deliver for consumers, small businesses and financial services as a quick, informal resolution service and an alternative to the courts.
Interim chief ombudsman at the FOS, James Dipple-Johnstone, said: “Behind each case are customers waiting for an answer and we are committed to delivering fair, timely and effective resolutions for consumers and businesses alike.
“The high demand reflected in today’s data underscores not only the vital role our service plays, but also the pressing need for reform to ensure it remains fit for the future. That’s why we’re committed to strengthening the dispute resolution system – so it works better for everyone and reflects the needs of today’s financial landscape.”
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