Financial Complaints Hit Record High Since PPI Scandal, Ombudsman Reveals

Financial Complaints Soar to Post-PPI Scandal Highs

The Financial Ombudsman Service (FOS) has reported a 54% surge in complaints, reaching 305,726 in 2024-25—the highest level since the PPI scandal peak in 2018-19.

Key Findings from the FOS Report

✔ 305,726 total complaints (April 2024–March 2025) – Highest since PPI crisis
✔ Fraud & scam complaints hit record high (35,416, up 28% year-on-year)
✔ Motor finance complaints skyrocket (73,328 vs. 12,604 last year)
✔ Irresponsible lending grievances double (71,685 vs. 33,221)
✔ Only 34% of complaints upheld (down from 37% last year)

Why Are Complaints Rising?

🔹 Digital banking risks – More scams and fraud due to online transactions
🔹 Cost-of-living pressures – More disputes over unaffordable lending
🔹 Motor finance scrutiny – Spike in commission-related complaints
🔹 Professional representatives driving cases – 50% of complaints came from claims firms

Most Complained-About Financial Products

1️⃣ Motor hire purchase (Highest disputes)
2️⃣ Credit cards
3️⃣ Current accounts
4️⃣ Car/motorcycle insurance

What the Ombudsman Says

“New financial products, digitalisation, and rising fraud mean we’re seeing more complex cases. We’re working with the FCA and Treasury to ensure the system is fit for the future.”
– James Dipple-Johnstone, Interim Chief Ombudsman

How Effective Is the Ombudsman?

✅ 34% complaint uphold rate (Down from 37% last year)
✅ Better success for direct complaints (37% upheld vs. 27% via claims firms)
✅ Free for consumers – No cost to escalate a complaint

What Should Consumers Do?

🔎 Check eligibility – Complaints must first go to the financial provider
📝 Gather evidence – Bank statements, emails, contracts
⏳ Escalate within 6 months if unresolved
🆓 Use the free FOS service – Avoid paid claims firms

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