Bank complaints spiked by 76% within the past year: Could it be YOUR BANK among the frequently complained about?
Financial complaints to the Financial Ombudsman Service (FOS) skyrocketed by a staggering 76% at the end of 2024, according to recently released figures.
Banks and credit card companies were the primary culprits, accounting for a whopping 77% of all complaints. The FOS attributed this surge to a significant increase in financial scams and fraud.
In the second half of 2024, the FOS received a total of 141,846 complaints, with 109,155 related to banking and credit services. This marked a dramatic leap compared to the same period in 2023, when the FOS received 62,139 banking and credit complaints.
Across all sectors, complaints to the FOS increased by 49% in the second half of 2024 compared to the same period in 2023. The escalating levels of complaints were largely due to issues such as banking fraud, credit affordability disputes, and motor finance commission cases.
According to reports from This is Money, Vanquis Bank topped the list of most complained-about firms within the banking and credit sector, with 17,612 new complaints in the second half of 2024. In comparison, Vanquis Bank received 16,067 new cases in the first half of the year. Credit card provider NewDay was the second most complained-about firm, with 8,345 complaints.
Among the well-known banking giants, Barclays and Revolut, alongside Monzo, HSBC, Lloyds, and Santander, were also among the league of most complained-about banks. Barclays received 4,301 complaints in the second half of 2024, while Revolut, with a similar UK customer base, received 3,397 new cases.
The FOS highlighted that disputes about fraud and scams were a major cause for the increase in complaints about banking and credit companies. Monzo, HSBC, and Santander received 3,393, 3,276, and 2,829 complaints respectively, while Lloyds, one of the UK's largest banks, received 2,843 banking and credit complaints.
James Dipple-Johnstone, interim chief Ombudsman at the Financial Ombudsman Service, emphasized the organization's commitment to strengthening the dispute resolution system. "We're committed to strengthening the dispute resolution system - so it works better for everyone and reflects the needs of today's financial landscape," he said.
For those seeking ways to save and make money, understanding the financial landscape is crucial. These insights provide a clear picture of the current state of banking and credit services in the UK. Stay informed and make educated decisions to protect your finances.
- The escalating number of financial complaints to the Financial Ombudsman Service (FOS) in 2024, particularly those related to banking and credit services, highlights the importance of understanding the financial landscape for those seeking savings and investment opportunities.
- In 2024, banks and credit card companies were identified as the primary culprits for the surge in complaints to the FOS, with 109,155 complaints recorded in the second half of the year.
- Among the most complained-about firms within the banking and credit sector in the second half of 2024, Vanquis Bank topped the list with 17,612 new complaints, a substantial increase compared to the first half of the year.
- Disputes about fraud and scams were a major cause for the increase in complaints about banking and credit companies, with Monzo, HSBC, Santander, and Lloyds, some of the UK's largest banks, receiving a significant number of complaints in this regard.
- The Financial Ombudsman Service (FOS) emphasized their commitment to strengthening the dispute resolution system in response to the rising number of complaints, aiming to create a resolution system that reflects the needs of today's financial landscape.
- As personal-finance management becomes increasingly complex, it is essential for individuals to stay informed and make educated decisions to protect their financial investments in 2023 and beyond, considering the current state of the banking and business sectors.
