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Financial Ombudsman Service predicts nearly 200,000 consumer complaints in 2024/5

  • 24/01/2024
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Financial Ombudsman Service predicts nearly 200,000 consumer complaints in 2024/5
The Financial Ombudsman Service (FOS) is predicting more than 181,000 consumer complaints in the next financial year driven by “everyday issues”.

The Financial Ombudsman Service (FOS) said that these issues included unaffordable lending, travel and motor insurance, and fraud and scam cases.

For instance, the FOS said that there will be a “continued rise in disputed transactions” fueled by a growing volume of financial fraud and scams.

It added that cost of living pressures would lead to a “rise in irresponsible and unaffordable lending complaints”.

The FOS continued that there could also be an increase in account closure complaints due to improved higher public awareness, motor insurance complaints would remain at a high levels alongside complaints about car finance commission arrangements.

The predictions are part of a consultation, which is open until 30 January.

The complaint resolution body said that it was aiming to resolve 90 per cent of cases within five months, which built on progress it had already made.

It is also looking at lowering the cost of the service to the industry in the year ahead, reducing the case fee by £100 per case to £650 and cutting its compulsory and voluntary jurisdiction levies.

The latter would lead to an effective £60m reduction in case fee and levy costs to the business.

The FOS is also seeking feedback on proposed charges for professional representatives for bringing cases to the FOS on whether and how this should be implemented, the level of fee, impact on complaint volumes, impact on different complaint groups and lead time needed.


Financial Ombudsman Service: ‘Looking to resolve complaints more quickly’

Abby Thomas, chief executive and chief ombudsman of the FOS, said: “Given cost of living pressures it’s imperative that, now more than ever, consumers understand their finances and are treated fairly and transparently by financial service providers.

“Looking ahead, we know our service will see a high level of complaints and that those disputes will likely focus on the critical issues that impact people’s everyday lives. This includes perceived unaffordable lending, mortgages and complaints about people’s savings and current accounts.

“We are planning to be more ambitious next year, resolving complaints more quickly and improving the service we offer. At a time when all businesses are facing financial pressures, we are also reducing the cost of our service to industry.”

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