Which? responds to complaints to Financial Ombudsman Service increasing by a fifth

Rocio Concha, Which? Director of Policy and Advocacy, said: 

"With more complaints made, more businesses complained about and more cases upheld by the Ombudsman - these figures paint a sorry picture of the customer experience in financial services, especially at a time when consumers are battling a cost of living crisis. 

"It's concerning to see such a significant rise in current account complaints about fraud and underlines the need for new rules that should see the vast majority of scam victims being reimbursed from October.

"It won't be a surprise to many drivers that motor insurance complaints have also increased. Which? research found that a third of insurers were rated poorly by claimants for payouts, despite repeated warnings from the Financial Conduct Authority for insurers not to undervalue cars. 

"Underpinning financial firms' behaviour is the Consumer Duty, which was brought in to drive up standards. Judging by these figures, which cover the first 5 months after the Duty was introduced, it is not currently having the desired effect. The FCA must be ready to show its teeth by taking tough action against businesses that flout the rules."

ENDS