| Link(s): | Vehicle issues now account for a quarter of all financial complaints (financial-ombudsman.org.uk) Quarterly complaints data: Q2 2023/24 (financial-ombudsman.org.uk) |
Context
FOS has published its latest quarterly complaints data, which shows that complaints relating to vehicle issues made up 25% of all cases for the second quarter of this financial year, July to September 2023/24.
Key points to note and next actions
The data shows the following;
- Vehicle-related complaints now make up 25% of all cases.
- The volume of complaints from people financing their vehicles has reached a five-year high.
- The spike in vehicle insurance cases is being caused by valuation disputes, customer service issues, and delays in payouts.
These increasing complaint levels have arisen in two separate sectors. From 1 July to 30 September 2023, on the consumer credit side, FOS received 4,622 complaints about hire purchase (motor) and 1,569 complaints about conditional sale (motor).
The complaints data shows that many car finance agreement claims are being submitted by professional representatives. Altogether they account for more than 90% of cases related to unaffordable or irresponsible lending, and 70% of complaints about fees, charges and commission. In its Plans and Budget Consultation 2024/25 (covered in last week’s update), FOS launched a consultation on new powers to charge claims management companies and other relevant professional representatives.
The Ombudsman is inviting views on how a regime might be implemented, and the impact of potential charges on the fee, on complaint volumes, on different groups of complainants, and the lead time required for businesses to be ready.