In July 2025 the Financial Ombudsman Service (FOS) published its annual complaints data and insights for 2024/25, which revealed a significant increase in complaints. The volume of complaints received by the FOS has reached levels not seen since the Payment Protection Insurance (PPI) saga of 2018/19. With 305,726 new complaints in 2024/25 (a 54% year-on-year surge) the data underscores not just statistical volatility, but a deeper narrative of consumer friction, regulatory strain and the need for change.
The FOS resolved 227,253 complaints during the same period, an 18% increase in resolution capacity compared to the previous year. This growth reflects the organisation’s operational investment and enhanced processing capabilities.
Top-Trending Consumer Concerns
The FOS data identified specific areas with notably high complaint volumes:
- Hire purchase (motor): 76,160 complaints, a nearly fourfold increase from the previous year.
- Credit cards: 60,364 complaints, up from 24,402 in 2023/24, driven by issues around unaffordable lending and disputes under Section 75 of the Consumer Credit Act 1974.
- Current accounts: 36,221 complaints, largely related to fraud and scams.
- Car/motorcycle insurance: 14,082 complaints.
- Conditional sale (motor): 11,521 complaints.
The overall consumer uphold rate stood at 34%, slightly lower than the 37% recorded in 2023/24. Notably, consumers who submitted complaints directly saw a higher uphold rate (approximately 37%) compared to those using professional representatives (approximately 27%), despite the latter accounting for half of all complaints.
The Role of Professional Representatives
Complaints submitted through professional representatives doubled in 2024/25, accounting for roughly 50% of all complaints, up from 25% the previous year.
In response, whilst complaints submitted by consumers are free of charge, the FOS introduced a revised fee structure for professional representatives. Those submitting more than 10 cases per year are now charged £250 per complaint, reduced to £75 if the complaint is upheld. This measure is designed to encourage higher-quality submissions and discourage speculative claims.
These changes form part of a broader strategic shift within the FOS. The organisation is investing in new technologies, case management tools, and agile staffing models to improve operational efficiency and manage increasing demand.
Why This Matters
For financial services firms, these findings are a warning sign. The sharp rise in complaints, particularly in areas such as motor finance and credit cards, signals growing consumer frustration. Firms should review and strengthen their internal dispute resolution processes, address avoidable complaints proactively and ensure their services meet the standards of the Financial Conduct Authority’s (FCA) Consumer Duty.
The FCA’s Consumer Duty (PRIN 2A of the FCA Handbook) requires firms to deliver good outcomes for retail customers. This includes ensuring products and services are fit for purpose, provide fair value and are comprehensible and supportive throughout their lifecycle. The spike in complaints strongly suggests that many firms are falling short in these areas.
For policymakers and regulators, the FOS data underscores the urgent need for reform and greater transparency, particularly concerning affordability assessments, financial promotions and the handling of fraud and scam-related disputes.
The Financial Ombudsman’s 2024/25 annual report demonstrates that consumer complaints are at their highest level in six years. It reflects both consumer dissatisfaction and a broader demand for systemic improvement in the financial services industry. In response, the FOS is evolving, modernising its operations to better support financial stability and rebuild consumer trust.
How Can Complyport Help?
Complyport can help your firm understand the FCA’s expectations, as well as the impact of these expectations to your firm. We can support your firm by providing:
- Regulatory Guidance: Expert advice on how the FCA’s Consumer Duty and complaints-handling rules apply to your firm.
- Ongoing Support: Continued assistance to ensure your firm remains compliant as regulatory expectations evolve.
- Quality Assurance: Review and assess the quality of your complaint handling procedures and Quality Control function.
- Complaints Review: Provision of an outsourced complaint handling function.
- Compliance Documentation: Review and drafting of policies and procedures, particularly relating to complaints handling under the Consumer Duty.
- Training: Practical training sessions on regulatory requirements and best practices in complaints handling and consumer protection.
Speak to one of Complyport’s Subject Matter Experts to learn how we can help you enhance your complaints-handling processes and meet your Consumer Duty obligations.
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