Complaints about financial products to the Financial Ombudsman Service have increased by 70 per cent in the past 12 months.
Data from the Fos showed in the first quarter of this financial year, consumers raised 74,645 cases with the free resolution service about products compared to the 43,953 complaints reported in the same period in 2023-24.
It also revealed professional representatives now account for around half of the complaints received by the Fos, compared to just 17 per cent in the first three months of 2023-24.
However, the data found in the first quarter of this financial year, only 25 per cent of claims brought by professional representatives were upheld, compared to 40 per cent of those brought directly by consumers.
Abby Thomas, chief executive and chief ombudsman of the Fos, said: “It’s concerning that we’re continuing to see large volumes of complaints, particularly considering the cost-of-living crisis.
“It’s vital that businesses are open and transparent with their customers, treating them with fairness and understanding. Whilst professional representatives have an important role to play, they must ensure that their cases are well evidenced and have merit.”
In recent months the Fos has been consulting on a proposed case fee for professional representatives which aims to make the fee model fairer and better reflect the ombudsman’s costs.
The Fos confirmed an update on this would be provided “in the coming months”.
Most complaint issues brought by professional representatives related to either irresponsible and unaffordable lending or motor finance.
Credit cards were the most complained about product in the first three months of this financial year, receiving 18,175 complaints.
alina.khan@ft.com
