Banking complaints almost double

The Financial Ombudsman Service (FOS) received 101,031 complaints about banking and credit cards in the first half of the year, with this almost double the 56,690 recorded in the first six months of 2023.

Across all products, the first six months of 2024 saw 133,019 new complains logged with the FOS. This marks a 40% rise on the year before.

In the opening six months of this year, the FOS upheld 35% of complaints in the consumers’ favour, marking a slight increase on the 37% upheld during H1 2023. Vanquis Bank was the most complained about firm within the banking and credit sector, receiving 16,067 new cases. Barclays received 4,289 complaints in the first half of 2024, while Revolut received 3,193. HSBC received 3,193 complaints in H1, including First Direct customer complaints. Lloyds received 2,919 complaints, while Monzo received 2,839. NatWest and Santander received 2,817 and 2,803 complaints respectively.

Banking and credit continues to be the most complained about sector and is the only sector that saw a year-on-year increase in complaints.

The complaints, including disputes about credit cards and unaffordable lending, car finance woes as well as fraud and scams. Over half of all banking and credit complaints were brought by professional representatives.

Abby Thomas, Chief Executive and Chief Ombudsman at FOS said “Businesses should put consumers at the heart of their service but the high level of complaints we receive shows that’s not always the case.

“It’s vital that businesses are open and transparent with their customers, treating them with fairness and understanding. Whilst professional representatives have an important role to play, they must ensure that their cases are well evidenced and have merit.”