Complaints related to credit cards, financial motor products, fraud and banking scams also contributed to the rise.
In total, 80,137 banking-linked cases were reported to the FOS using its free resolution service in the last financial year – almost 20,000 more than the previous year.
Abby Thomas, chief executive and chief ombudsman at FOS, said: “It’s always concerning when you see cases rise so significantly, particularly when so many people are struggling in the current economic climate. If consumers don't feel they've been treated fairly, they should contact our free, independent service and we'll investigate their complaint.”
What were the biggest complaints related to and how can you complain to the FOS if you’re unhappy with the service with your financial provider?
Which banking products saw the biggest complaints?
These were the top five complained-about banking products.
Swipe to scroll horizontally
Banking product
2023/24
2022/23
Current accounts
30,635
26,039
Credit cards
24,402
14,504
Hire purchase (motor)
21,441
11,446
Car/motorcycle insurance
16,322
11,851
Conditional sale (motor)
7,829
1,900
Current accounts
Current accounts saw the highest number of complaints, due to a rise in authorised push payment (APP) scams. According to the FOS, complaints related to scams have risen to its highest level, at 27,312.
Whether you have one of the best savings accounts or a packaged bank account, there’s always the online safety element to consider. Which? Data reveals the best and worst banks for online banking, where only HSBC and NatWest scored 80% or above for being the safest online.
Credit cards
The majority of credit card complaints were down to unaffordable or irresponsible lending, says the FOS. Fraudsters also played a part in tricking customers through APP scams.
Motor complaints
Motor complaints were also high, seeing a year-on-year increase in hire purchase (motor), car/motorcycle insurance and conditional sale (motor) matters. If you’re a car finance customer, you might have complained about mis-sold finance which is under review by the FCA.
How can you make a complaint to the Financial Ombudsman Service?
If you’re unhappy with your bank or financial services provider, you can take your complaint to the FOS. To do this you need to:
Go through your bank’s or provider’s complaint service first – write a letter or email to them.
If you’re unhappy with your provider’s resolution or you didn’t receive a response within eight weeks, you can complain to the FOS.
To complain, go on the FOS website and download a complaints form. The FOS will then get in touch with your provider and scope out both sides, before making a decision.
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Vaishali has a background in personal finance and a passion for helping people manage their finances. As a former staff writer for MoneyWeek, Vaishali covered the latest news, trends and insights on property, savings and ISAs.
She also has bylines for the U.S. personal finance site Kiplinger.com and Ideal Home, GoodTo, inews, The Week and the Leicester Mercury.
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