A substantial rise in banking and credit complaints has partly driven an increase in gripes being taken to the ombudsman.
The Financial Ombudsman Service (FOS), which released complaints figures for the first half of 2023, also highlighted building and motor insurance complaints, which recently hit a five-year high. It said this was in part due to insurers delaying in paying out on claims.
Mortgage and home finance complaints also edged up in the first half of this year, compared with the last six months of 2022.
Customers of financial firms can take their complaint to the ombudsman service when they cannot reach an agreement with the firm.
Overall, 93,114 complaints were received by the FOS between January 1 and June 30 2023, increasing from 79,921 complaints in the last six months of 2022.
The service said that banking and credit complaints have risen substantially, with fraud and scam cases making up around half of that increase.
The FOS received 56,690 new banking and credit complaints in the first half of 2023, up from 50,346 in the second half of 2022.
It also received 24,496 new general insurance/pure protection complaints in the first half of this year, compared with 19,346 in the second half of 2022.
There were also 5,002 new mortgages and home finance complaints the first half of 2023, compared with 4,160 in the second half of 2022; and 4,189 new decumulation life and pension complaints in the first half of 2023, increasing from 3,842 in the second half of 2022.
Financial complaints have risen again, with cases particularly increasing in the banking and insurance sectors
Abby Thomas, FOS
The FOS also recorded 2,593 new complaints about investments in the first half of this year, compared with 2,227 in the second half of 2022.
Abby Thomas, chief executive and chief ombudsman at the FOS, said: “Financial complaints have risen again, with cases particularly increasing in the banking and insurance sectors.
“Given the economic challenges people are facing, it’s more important than ever that they feel protected. Whatever their grievance, consumers should expect fair and reasonable treatment from their provider.
“If consumers don’t feel that’s the case, they can ask our free, independent service to investigate their complaint.”
In the first six months of this year, the FOS upheld 37% of complaints in the consumers’ favour, compared with 34% in the second half of 2022.
