Banking complaints have surged to a 10-year high, the Financial Ombudsman Service (FOS) has found.
Financial complaints going to the ombudsman in the last year alone shot up by around 29%.
Current accounts have seen the highest level of unhappy customers.
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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.
| 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.
For more advice, read our article on how to complain about your financial services provider
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