Credit, Collections & Insolvency News
Latetst Financial Conduct Authority (FCA), complaints to financial services firms decreased by 4.3% in the second half of 2024, coming in at 1.78 million.
The decline may reflect the positive effects of the FCA’s Consumer Duty, which mandates that firms prioritise customer needs in their operations. The total redress paid also fell by 3% to £236m, while the upheld complaints rate remained steady at around 57%. The most complained-about products included current accounts, motor and transport, and credit cards, all of which saw a reduction in complaints.
All product groups saw a decrease in their complaint numbers with banking and credit cards decreasing 1.3% from 850,983 (2024 H1) to 839,526 (2024 H2)
Ehilst. home finance decreased 10% from 93,234 (2024 H1) to 83,936 (2024 H2)
Darren Richards, Head of Insurance, Regulatory & Risk at Broadstone, ssid “Given the immense scrutiny from the FCA on consumer outcomes and fair treatment, the Regulator will be pleased to see the number of complaints falling across all major product groups.
“While the drop is a small one for now, it nonetheless marks a step in the right direction and suggests that initiatives like Consumer Duty are starting to pay dividends. Markets remain volatile and consumer confidence shaky, so financial services firms need to retain a laser focus on ensuring they are looking after the long-term financial interests of their customers throughout their interactions.”