The number of investment and pension complaints has dropped – how does your provider rank?

Fewer savers and investors are complaining about their financial products but it is unclear if customers are happier or just reluctant to raise an issue.

Data from the Financial Conduct Authority (FCA) shows financial services firms received 1.78 million complaints during the second half of 2024, a 4.3% decrease from the first six months of the year.

Complaints have stayed relatively constant between 1.7 million and 2 million since 2021, the City watchdog said.

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It comes after the introduction of new Consumer Duty rules, which give financial providers extra responsibilities covering how they should treat customers.

Providers must now be more transparent when it comes to interest, fees and product terms.

This approach appears to be working as all product groups saw a decrease in their complaint numbers.

But there are suggestions that it is just too hard to complain.

Michelle Lawson, director at Lawson Financial, said: “Fewer people are complaining for a multitude of reasons.

“Firstly, it is made too hard where people have to write or email and consumers are time poor now. Many are also of the opinion that there is little point as nothing will be done and their complaint will be just resolved via a small amount of negligible compensation or goodwill with a letter of apology. We also hear all too often that lessons will be learned but they rarely are. It's a perfect storm resulting in people wondering 'what's the point?'.”

Stephen Perkins, managing director at Yellow Brick Mortgages, also remains sceptical.

He said: “I would like to think that Consumer Duty is responsible for improved service and fairness being provided to clients, and therefore less complaints being made. However, the FCA figures show reported complaints as the system requires the company to self-declare these figures in their returns.

“So it could also be mis-reporting or issues being dealt with and resolved quickly before becoming official complaints. The other alternative is if clients have become disillusioned about complaints on financial firms and the ombudsman and see it as more hassle than benefit.”

What are consumers complaining about?

The FCA publishes firm complaints data every six months based on firms who have received 500 or more complaints during that period.

Banking and credit card complaints decreased 1.3% from 850,983 in the first half of the year to 839,526 by the end of 2024.

Decumulation and pensions complaints dropped 4.2% to 89,172 and investment issues decreased 15.7% to 52,971.

There were decreases in the three most-often complained about products: current accounts, motor finance and credit cards.

This may change though, with the FCA currently considering a redress scheme for undisclosed motor finance commissions.

The percentage of complaints that were upheld by firms remained around 57% last year, while £236m of redress was paid – down 3%.

The most complained about financial firms

HSBC had the most complaints opened in the second half of 2024 at 98,421, FCA data shows.

Its upheld complaints rate is relatively low though, at 59.95%.

The bank had the highest number of banking and credit card complaints opened at 91,184, with 59.91% upheld.

Aviva had the most complaints about pensions in the second half of 2024 at 16,030 and 66.52% were upheld.

Hargreaves Lansdown was the most complained about firm when it came to investments. The DIY investing platform giant received 3,109 complaints in the second half of the year. Just 50.68% were upheld.

How to complain about your financial provider

If you are unhappy with a financial service or feel you have been mis-sold, the first step is to complain to your provider in writing either by email or letter to their complaints department.

You can only complain about regulated products provided by firms approved by the FCA. That includes residential mortgages, insurance products, pensions and investments, although you can’t complain about stock market performance.

Providers need to give a response within eight weeks.

If you are unhappy with the decision or have not had a response after eight weeks, you can then complain to the Financial Ombudsman Service. Complaint forms can be downloaded from the FOS website.

It will consider your issues and contact the financial firm to get their side before making a decision whether to uphold the complaint and award compensation. The latest FOS data shows it upheld 37% of complaints in the first quarter of the 2024/25 financial year.

There are no costs to complain to your financial provider or to the FOS. And you don't need to enlist the services of a professional representative to complain. Claims management companies can help with complaints on a no-win-no-fee basis, but could take a large chunk of any compensation you receive.

Another option if you are unhappy with complaining to your financial provider or the FOS is to take legal action. But this will cost you as you may need to pay for legal advice and cover court fees.