Financial services complaints rise to 1.87m

Latest complaints data from the Financial Conduct Authority (FCA) for H2 2025 showed that financial services firms received 1.87m complaints, a 0.9% increase from 2025 H1 (1.85m) 

The main product groups to experience a notable increase in their complaint numbers were insurance & pure protection, which increased 10.1% from 717,523 (2025 H1) to 790,329 (2025 H2).

Among other product groups, decreases were seen in complaint numbers: Banking and credit cards decreased 4.7% from 899,910 (2025 H1) to 857,757 (2025 H2), whilst Home finance decreased 3.8% from 78,616 (2025 H1) to 75,658 (2025 H2).

The percentage of complaints that firms upheld decreased from 57.88% in 2025 H1 to 55.50% in 2025 H2. The total redress value fell in H2 2025 from a little over £283 million to around £236 million with the average redress upheld dropping to £215 from £238.

Lloyds Banking Group saw the highest number of complaints of any financial services business in the second half of 2025, with 187,516 grievances logged. While its flagship brand, Lloyds Bank, accounted for 90,837 complaints, Bank of Scotland accounted for 79,508.

Commenting on the figures Phil Smith, Head of Redress at Broadstone, said “Complaints across the financial services sector increased slightly in the second half of 2025 but remain well within their historic range. Any rise in consumer dissatisfaction is cause for concern, especially given the intense regulatory focus and scrutiny on treating customers fairly. The sharp rise in insurance and pure protection complaints is particularly notable and may reflect a combination of increased product uptake, issues with certain products, heightened consumer expectations and a greater willingness among customers to challenge outcomes.

“The sharp fall in the value of redress to financial services firms could indicate a reduction in the severity of issues being escalated, or that firms are resolving higher-value complaints earlier in the process before they crystallise into formal redress.

“Firms will be focusing on identifying root causes of complaints, improving front-end customer experience and using complaints data more effectively as a strategic tool to deliver better outcomes and reduce future risk, supported by earlier intervention and clearer customer communications.”