The Financial Ombudsman Service (FOS) received 74,645 new complaints about financial products in the first quarter of the 2024/25 financial year, covering 1 April to 30 June 2024, according to quarterly complaints data published on 29 August 2024. That is up 70% on the 43,953 complaints reported in the same period in 2023/241.
The overall uphold rate, the proportion of complaints resolved in favour of consumers, was 37%1. Professional representatives, such as claims management companies, accounted for around half of the complaints FOS received, compared with just 17% in the first three months of 2023/24. Only 25% of claims brought by professional representatives were upheld, against 40% of those brought directly by consumers at no cost1.
Credit cards were the most complained about product, with 18,175 complaints. The vast majority of these, 15,580, concerned perceived irresponsible and unaffordable lending, and over half of that figure was brought by professional representatives1. Hire purchase (motor) was second, with 15,925 complaints, of which around three quarters related to motor finance commission. Over 90% of those motor finance commission complaints were brought by professional representatives1. The most complained about issues overall were irresponsible lending and unaffordable lending1.
Abby Thomas, Chief Executive and Chief Ombudsman, said:
"It's concerning that we're continuing to see large volumes of complaints, particularly considering the cost-of-living crisis. 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. If consumers have a dispute with their bank or finance provider, they can come directly to our easy-to-use service for free and we will see if we can help"
| Product | Complaints, Q1 2024/25 | Main issue reported |
|---|---|---|
| Credit cards | 18,175 | Irresponsible and unaffordable lending (15,580) |
| Hire purchase (motor) | 15,925 | Motor finance commission (around three quarters) |
Why it matters for households
The figures cover complaints received between 1 April and 30 June 2024 and show how many consumers took a dispute about a financial product to the ombudsman, and how many of those disputes succeeded. The 37% overall uphold rate means that, across all products, a minority of complaints were resolved in the consumer's favour1. The gap between outcomes matters for anyone whose case is handled by a paid representative: 25% of those claims were upheld, against 40% of complaints brought directly by consumers at no cost1.
Credit cards and motor finance dominate the volumes. For credit cards, most complaints concerned lending that consumers considered irresponsible or unaffordable1. For hire purchase (motor), most complaints concerned commission1. Households with a dispute about a credit card provider, or about how a lender assessed affordability, are the group most represented in this quarter's numbers. The Financial Ombudsman Service decides complaints case by case, and its awards and time limits apply to those cases.
What happens next
FOS publishes quarterly complaints data, and the next set covering the following quarter had not been published at the time of this data release1. The source does not report any change to FOS fees, time limits or eligibility rules arising from these figures. Consumers who want to understand how the process works can read taking a complaint to the Financial Ombudsman Service, and those with a card dispute can read complaining about a credit card provider.
Citizens AdviceFree advice on money, consumer and legal problems in England and Wales
Financial Ombudsman ServiceFree, independent help when a complaint about a firm is not put right
MoneyHelperFree, impartial money and pensions guidance, set up by government
Citizens Advice ScotlandFree advice across Scotland