Financial complaints have jumped by around a fifth, says ombudsman service

Banking and credit score proceedings have helped to power a arise in buyer gripes gained via an ombudsman provider.

General, the choice of monetary proceedings gained in the second one part of 2023 rose via just about a 5th in comparison with the similar length a date previous, the Monetary Ombudsman Provider (FOS) stated.

The free-to-use provider, which used to be eager as much as unravel disputes between customers and monetary companies, gained a complete of 95,349 proceedings between July 1 and December 31 2023, which used to be 19.3% upper than the 79,921 proceedings gained in the similar length in 2022.

Banking and credit score proceedings had been the principle driving force of the arise, the provider stated, with flow accounts and bank cards making up greater than 40% of circumstances inside of this sector. Flow account proceedings proceed to be ruled via disputes over fraud and scams, it added.

There have been 62,139 untouched banking and credit score proceedings in the second one part of 2023, up from 50,346 in the second one part of 2022.

The ombudsman gained 5,660 bank card proceedings within the endmost 3 months of 2023 – the best quantity on its data going again to the beginning of the monetary date 2014/15.

This used to be pushed via an building up in perceived unaffordable and irresponsible lending via monetary corporations, the ombudsman stated.

Some 3,086 of the bank card proceedings throughout the quarter had been because of perceived unaffordable or irresponsible lending via monetary corporations.

Relatively, in the similar quarter a date previous, there have been 3,216 bank card proceedings, of which 665 had been about irresponsible or unaffordable lending.

The provider additionally noticed an building up normally insurance coverage circumstances, with automobile and motorbike insurance coverage proceedings emerging in particular sharply.

That is in part because of persisted delays in corporations with the ability to put the condition proper when a declare is made, in addition to insurer’s valuation of a car, it stated.

There have been 22,845 untouched basic insurance coverage/natural coverage proceedings in the second one part of 2023, in comparison with 19,346 throughout the similar length a date previous.

Abby Thomas, well-known govt and well-known ombudsman on the FOS, stated: “In light of the continuing economic challenges people face, it’s always concerning to see complaint levels continue to rise.

“People’s relationships with their banks and insurers are incredibly important, with many relying on these businesses for their homes, their cars and their livelihoods. That’s why I’m determined to ensure firms create an environment which is fair and transparent for all consumers.

“If customers don’t feel they’ve been treated fairly, they can come to our free and independent service, and we’ll investigate their complaint.”

Within the endmost six months of 2023, the ombudsman provider guarded 36% of proceedings within the customers’ favour, up from 34% in the second one part of 2022.

A spokesperson for UK Finance stated: “Financial services firms take complaints seriously and are committed to providing good outcomes for customers.

“Credit card providers must comply with strict Financial Conduct Authority rules to assess whether lending is affordable, and are required to intervene where a customer has been in persistent debt for a period of time.

“Firms are committed to helping anyone concerned about their finances.

“Customers who are worried about their credit card repayments should get in contact with their provider as soon as possible to discuss the options for help, support will be available and tailored to your individual circumstances.”

Rocio Concha, Which? director of coverage and advocacy, stated: “With more complaints made, more businesses complained about and more cases upheld by the ombudsman, these figures paint a sorry picture of the customer experience in financial services, especially at a time when consumers are battling a cost-of-living crisis.

“It’s concerning to see such a significant rise in current account complaints about fraud and underlines the need for new rules that should see the vast majority of scam victims being reimbursed from October.”

A spokesperson for the Affiliation of British Insurers (ABI) stated: “Insurers continue to do all they can to support customers and are committed to providing exceptional customer service and settling all legitimate claims as quickly as possible.

“When a complaint is made, insurers will always aim to deal with them swiftly. We and our members will work with the FOS to understand where any learnings can be made.”