| Link(s): | Financial Ombudsman Service sees complaints increase by more than 50% – Financial Ombudsman service |
Context
The newly published FOS data shows complaints about fraud and scams, current accounts and credit cards are at record highs.
Key points to note and next actions
FOS received 73,692 overall complaints between July and September 2024. In the same period in 2023/24 it received 46,716 cases.
The newly released figures reveal that:
- Fraud and scams cases have reached their highest quarterly level, with 9,091 complaints made by consumers in the three-month period (6,264 cases in the same period last year and in the previous quarter (April to June 2024) 8,734 fraud and scams complaints).
- Of the latest fraud and scams figure, 4,956 were in relation to authorised push payment (APP) scams.
- Across all financial products the FOS investigated, the most complained about are credit cards, hire purchase (motor) and current accounts.
- For current accounts more customers are falling victim to fraud and scams and are also unhappy with the service their bank is providing. The majority of credit card cases are about perceived irresponsible and unaffordable lending especially where it is believed financial providers should have intervened over persistently high credit balances, high credit limits or provided lower interest rates.
- With both these products a large proportion of the cases are brought by professional representatives, accounting for a third of current account complaints, and 85% of credit card cases.
- FOS consulted on a fairer fee model which will see professional representatives charged to bring cases to its service and recently published feedback on that consultation setting out the intention to proceed with a charging regime, subject to the relevant Parliamentary and FCA approvals being given.