Financial services complaints fall across all product groups: FCA

In H2 2024, financial services firms received 1.78m complaints, a 4.3% decrease from H1, according to the latest data from the FCA.

Since 2021, complaints have stayed relatively constant between 1.7m and 2.0m.

All product groups saw a decrease in their complaint numbers in H2.

Banking and credit card complaints fell by 1.3%, with decumulation & pensions down by 4.2% and home finance complaints 10% lower at 83,936.

Insurance & pure protection decreased 6.0% and investment complaints were down 15.7%.

There were also decreases in the three most-often complained about products: current accounts by 0.3%, motor and transport by 8.0%, and credit cards by 2.4%.

Most other products saw small increases or decreases by similar percentage amounts. The two products with the largest percentage changes, driven mostly by the low number of complaints about those products, were investment packaged multi products, from 73 in H1 to 115 in H2 (a 57.5% increase), and protection packaged multi products from 554 in H1 to 788 in H2 (a 42.2% increase).

The percentage of complaints that were upheld by firms remained around 57% between H1 and H2 2024.
 
In H2 2024 the total amount of redress was £236m. This is a 3.0% decrease on the H1 figure of £243m.

Darren Richards, head of insurance, regulatory and risk at independent financial services consultancy Broadstone, commented: “Given the immense scrutiny from the FCA on consumer outcomes and fair treatment, the Regulator will be pleased to see the number of complaints falling across all major product groups.

“While the drop is a small one for now, it nonetheless marks a step in the right direction and suggests that initiatives like Consumer Duty are starting to pay dividends. Markets remain volatile and consumer confidence shaky, so financial services firms need to retain a laser focus on ensuring they are looking after the long-term financial interests of their customers throughout their interactions.

“Redress remains a costly outgoing for firms – as the ongoing motor finance case should be a reminder of – so it quite literally pays to treat customers fairly.”