Financial gripes ‘have reached highest level since PPI scandal aftermath'
Consumers lodged 305,726 complaints about financial products with the Financial Ombudsman Service (FOS) from the start of April 2024 to the end of March 2025.
The service said the last time it received more complaints was during the payment protection insurance issue in 2018-19, when 388,392 complaints were recorded.
It has seen significant jumps in some complaint areas.
Fraud and scam complaints reached the highest level recorded since the ombudsman started tracking them in 2018-19. Some 35,416 complaints about fraud and scams were received in the 2024-25 period, up from 27,675 in 2023-24.
There were 71,685 complaints about irresponsible or unaffordable lending, compared with 33,221 in 2023-24.
The service logged 73,328 motor finance commission complaints in 2024-25, up from 12,604.
James Dipple-Johnstone, interim chief ombudsman at the FOS, said: 'New financial products, the digitalisation of services and an increase in fraud and scams mean that we now see high levels of demand and an increasing number of complex cases.
'That is why we are working closely with HM Treasury and the FCA (Financial Conduct Authority) to ensure the system – including the vital role our service plays within it – is fit for the future.'
The 2024-25 caseload is a 54% jump compared with the 198,798 complaints received the previous year.
In 2024-25 the service upheld 34% of complaints in consumers' favour, compared with 37% in 2023-24.
Around 27% of complaints brought by professional representatives were upheld, and about 37% brought directly by consumers. Consumers can take a complaint to the ombudsman directly themselves for free.
Around half of cases the ombusdman received in 2024-25 were referred by professional representatives.
The most complained-about products in 2024-25 related to motor hire purchase, credit cards, current accounts and car or motorcycle insurance, the service said.
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