Financial product complaints to FOS soar by 70%

The Financial Ombudsman Service (FOS) received 74,645 new complaints between April and June 2024, an increase of 70% compared to 43,953 reported in the same period last year.

On average, across all financial products, FOS upheld 37% of the cases it resolved in Q2 in favour of the consumer.

Credit cards were the most complained about product in the quarter.

Around half of the complaints were brought by professional representatives, which include Claims Management Companies, compared to just 17% reported in the first three months of 2023.

Most complaint issues brought by professional representatives relate to either irresponsible and unaffordable lending or motor finance.

However, only 25% of cases brought to FOS by professional representatives were found in favour of consumers, compared to 40% of cases referred directly by consumers for free.

FOS recently consulted on a proposed case fee for professional representatives, aiming to make the fee model fairer and better reflect costs.