Credit card and banking complaints rise

Issues with banking and credit cards drove finance complaints up by 19% in the second half of last year, according to latest data from the Financial Ombudsman Service (FOS).

Barclays had the highest number of complaints at 5,207, followed by Moneybarn with 4,495.

FOS upheld 36% of complaints in consumers’ favour. Complaints tied to current accounts and credit cards represented over 40% of the total figure, with credit card complaints reaching an all-time high. General insurance cases also rose, particularly car or motorcycle insurance complaints.

Conversely to the FOS reported fall in mortgage complaints, the FCA last week reported a rise in home finance objections, stating a rise of 3.7% to 94,822 in the second half of last year.

Overall, the service received a total of 95,349 complaints regarding financial services between 1st July and 31st December 2023 (H2) compared to 79,921 complaints in the same period in 2022.

The figures showed that there were 62,139 new banking and credit complaints in H2 2023, compared to 50,346 in H2 2022. There were 22,845 new general insurance/pure protection complaints in H2 2023, compared to 19,346 in H2 2022. The figures also showed that there were 3,877 new mortgages and home finance complaints in H2 2023, compared to 4,160 in H2 2022.

FOS Chief Executive and Chief Ombudsman Abby Thomas said “In light of the continuing economic challenges people face, it’s always concerning to see complaint levels continue to rise.

“People’s relationships with their banks and insurers are incredibly important, with many relying on these businesses for their homes, their cars and their livelihoods. That’s why I’m determined to ensure firms create an environment which is fair and transparent for all consumers.”