FOS complaints hit a two year low following overhaul of rules

Complaints to the Financial Ombudsman Service (FOS) fell to the lowest level in two years in Quarter 4 2025. Between October and December, the FOS received 47,300 complaints compared to 68,400 in the closing quarter of 2024.

The decline comes after an overhaul of rules from regulators and the Treasury, which means professional representatives now incur a £250 fee for cases beyond the first ten in a financial year. Under the new system, banks face a £650 fee after three complaints. The FOS said the changes have led to ‘better evidenced complaints’ from professional representatives.

Data shows that fewer cases are being withdrawn or abandoned. While nearly a third of complaints were withdrawn or abandoned in the last financial year, the rate fell to 19% from April to December. The Financial Conduct Authority’s pause on motor finance complaints has also led to a fall in cases.

James Dipple-Johnstone, Interim Chief Ombudsman at the Financial Ombudsman Service, said ‘We are improving our service to ensure we can help underpin confidence in financial services now and in the future.

“Following a period of extraordinary demand, our case volumes are returning to a steady state as measures we have implemented ensure the complaints that come to us are better evidenced and ready to be investigated.

“The changes we have already introduced – and those we plan to make in the future – will allow us to focus on getting back to our core purpose for customers as a quick, informal and high-quality dispute resolution system.”

The breakdown of the figures shows which products were the most complained about between October and December 2025. 

	As reported in Q3 2024/25	As reported in Q2 2025/26	Latest figures – Q3 2025/26
Current accounts	8,800	7,900	8,500
Credit cards	11,000	4,700	5,200
Hire purchase (motor)	16,000	4,900	3,500
Car or motorcycle insurance	3,700	3,200	3,400
Electronic money (e-money accounts	2,200	2,200	2,500
Other products	26,700	23,400	24,200