Affordability and automotive finance main development in complaints to Monetary Ombudsman Service

Credit score affordability and automotive finance had been liable for a big phase in development of general complaints to the Monetary Ombudsman Service (FOS) within the second half of 2024.

The newly launched figures reveal continued excessive volumes of complaints with a complete of 141,846 complaints obtained between July and December final 12 months, in comparison with 95,349 complaints in the identical interval in 2023 (a 49% enhance).

Round 46% of complaints inside this era (July – December 2024) had been referred to the Monetary Ombudsman by skilled representatives.

That’s in comparison with 22% throughout the identical interval in 2023.

The FOS confirmed the expansion has “primarily been centered on credit score affordability and automotive finance complaints”.

James Dipple-Johnstone, interim chief ombudsman on the Monetary Ombudsman Service, mentioned: “Behind every case are prospects ready for a solution and we’re dedicated to delivering honest, well timed and efficient resolutions for customers and companies alike.

“The excessive demand mirrored in at present’s information underscores not solely the important position our service performs, but additionally the urgent want for reform to make sure it stays match for the long run.

“That’s why we’re dedicated to strengthening the dispute decision system – so it really works higher for everybody and displays the wants of at present’s monetary panorama.”

Final month, the FOS, which is free for customers who deliver their criticism on to it, launched a brand new charge mannequin to cost skilled representatives who deliver greater than 10 complaints a 12 months.

The transfer goals to supply a fairer charge association and encourage these representatives to submit better-evidenced complaints, contemplating their deserves extra diligently earlier than referring them.

The Ombudsman lately outlined its plans to rework and enhance its service to sort out the demand skilled throughout 2024/25.

This consists of rising its staffing capability to resolve complaints and “constructing flexibility into its workforce” so the FOS can reply to modifications in demand.

Solely 1 / 4 of complaints by skilled representatives present in favour of the buyer

The figures present firm-level complaints information for Q2 and Q3 of the 2024/25 monetary 12 months. There have been 109,155 complaints from July to December 2024 within the banking and credit score sector, in comparison with 62,139 throughout the identical interval in 2023.

Within the final six months of 2024 the Monetary Ombudsman Service upheld 33% of complaints in customers’ favour, in comparison with 36% within the second half of 2023.

Nevertheless, solely round 25% of complaints introduced by skilled representatives had been present in favour of the buyer, in comparison with round 37% introduced instantly by customers without cost. The info reveals that uphold charges differ per agency.

(FOS) will launched a £250 cost for claims administration corporations from April.

Beforehand, the FOS mentioned there was “little business incentive” for these companies to deliver ahead solely robust instances.