Financial complaints have risen by 20% according to latest half-yearly data
1 May 2024
Our newly published data shows the number of financial complaints received in the second half of 2023 rose by a fifth.
We set out trends for new complaints we expect to see in 2024/25 in our Plans and Budget Consultation. The consultation is currently open and closes on 30 January 2024.
The plans highlight the key personal finance issues where we expect to see new complaints about financial providers. These include:
Commenting on the trends set out in our plans, Abby Thomas, Chief Executive and Chief Ombudsman, said:
Given cost-of-living pressures it’s imperative that, now more than ever, consumers understand their finances and are treated fairly and transparently by financial service providers.
Looking ahead we know our service will see a high level of complaints and that those disputes will likely focus on the critical issues that impact people’s everyday lives. This includes perceived unaffordable lending, mortgages and complaints about people’s savings and current accounts.
We are planning to be more ambitious next year, resolving complaints more quickly and improving the service we offer. At a time when all businesses are facing financial pressures, we are also reducing the cost of our service to industry.”
In the next financial year we set a new target of resolving 90% of cases within five months. This builds on the progress we have made to get consumers and businesses answers to disputes as quickly as possible while maintaining the quality of judgements.
The consultation sets out our plans to reduce the cost of the service to industry in the year ahead. It proposes to reduce the case fee by £100 per case to £650 and reduce its compulsory and voluntary jurisdiction levies on businesses. This results in an effective £60 million reduction in case fee and levy costs to businesses, once inflation and increases in the number of cases resolved are taken into consideration.
We are also seeking feedback on proposed new charges for professional representatives for bringing cases to us. We’re inviting views on whether and how a charging regime might be implemented, including on the level of any fee itself; the impact on complaint volumes, the potential impact on different groups of complainants, and the lead time required for businesses and professional representatives to be ready.
We were set up by Parliament to resolve individual complaints between financial businesses and their customers on a fair and reasonable basis, as a free alternative to the courts. It can look into problems involving most types of money matters. It is committed to sharing insight and experience to encourage fairness and confidence in financial services.
1 May 2024
Our newly published data shows the number of financial complaints received in the second half of 2023 rose by a fifth.
4 April 2024
Today we published our final Plans and Budget detailing the next phase of our transformation, whilst confirming the increased caseload we expect in the upcoming financial year.
1 March 2024
Our latest complaints data publication shows that perceived unaffordable lending has driven complaints relating to credit cards to their highest quarterly level.