Total financial services complaints down 1%; credit card complaints on the rise

Financial services firms received 1.87 million complaints in the second half of 2023, a 1% fall from H1 2023, new figures published by the Financial Conduct Authority (FCA) have revealed.

Complaint figures have stayed relatively constant between 1.8 million and two million since the payment protection insurance (PPI) peak in 2020, the regulator highlighted.

The FCA publishes its complaints data every six months and provides firm-specific data for individual firms as well as aggregate data at market-level.

These data sets include submissions from firms reporting 500 or more complaints within a six-month period, or firms reporting 1,000 or more complaints in a year. Firms that meet these thresholds are obligated to publish complaints data on their websites, and these complaints account for around 98% of all complaints that firms report to the regulator.

In the latest data, the product groups that experienced an increase in their complaint numbers were banking and credit cards which were up by 3.2%, as well as home finance (3.7%), and investments (3.4%).

The percentage of complaints upheld decreased from 61% in H1 2023 to 58% in H2.

Responding to the latest complaints figures, associate partner at Vestigo Partners, Tom Cuppello, said that while total complaints saw a decrease through H2 2023, it was “concerning” to see a spike in the number of complaints made about credit cards.

“It has been a volatile period for consumer lending following the surge in borrowing costs which may well be driving this trend,” Cuppello commented. “Lenders need to be transparent with the terms and conditions of their products, especially regarding interest rates and how payments are calculated.

“The FCA’s own probe into the credit market proposed remedies to help lenders improve customer outcomes and reduce complaints by increasing governance, deepening the focus on the consumer and establishing new data requirements.

“This complaints data and the advent of Consumer Duty are another reminder for lenders that they must begin considering what processes need to change and what investment is required to avoid regulatory consequences.”



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