On 1 May 2024, the Financial Ombudsman Service (FOS) published new data on the number of financial complaints received in the second half of 2023. The data reveals that the number of complaints the FOS received overall during that period increased by almost a fifth compared with the same period in 2022 (a total of 95,349 complaints between 1 July and 31 December 2023, compared to 79,921 complaints in the same period in 2022).

Key points from the data include:

  • Banking and consumer credit related complaints were the main driver of the rise, with current accounts and credit cards made up over 40% of cases in the sector.
  • Current account complaints continue to be dominated by disputes over fraud and scams.
  • Credit card complaints saw an all-time high of 5,660 complaints in the last three months of 2023, driven by perceived unaffordable and irresponsible lending by firms.
  • The FOS also saw an increase in general insurance cases, with car and motorcycle insurance complaints seeing the sharpest rise. This was attributed in part to issues including delays in putting things right when a claim is made, and claims valuations. In the last six months of 2023, the FOS upheld 36% of complaints in the consumers’ favour, compared to 34% in the second half of 2022.