Context
Complaints about financial products have increased by 70% in the past 12 months when compared to the equivalent figure from last year. FOS has seen a significant rise in financial complaints brought by professional representatives.
Key points to note and next actions
- In the first quarter of this financial year (1 April – 30 June 2024), consumers raised 74,645 cases about financial products compared to the 43,953 complaints reported in the same period in 2023/24.
- Professional representatives now account for around half of the complaints received, compared to just 17% in the first three months of 2023/24. Most complaint issues brought by professional representatives relate to either irresponsible and unaffordable lending or motor finance.
- Car / motorcycle insurance was the fourth most complained about product type, showing just under a 2% rise in complaints compared to the first quarter of the previous financial year (3,940 against 3.869).
- On average, across all financial products FOS upheld 37% of the cases it resolved this quarter in favour of the consumer (the uphold rate for complaints from professional representatives is 26%, meaning that almost three-quarters of complaints brought by professional representatives are not upheld).
- Buildings insurance complaints are up by 13% to 2,001 complaints compared to the same period in 2023/24.