The Financial Ombudsman Service says it expects to handle more than 181,000 customer complaints over the next financial year, driven by “everyday issues” such as unaffordable lending, mortgage issues and motor insurance cases.
The body adds it expects to see growing numbers of disputed transactions, fuelled by rising volumes of financial scams.
It points out that cost-of-living pressures will lead to an uplift in “irresponsible and unaffordable lending complaints”.
It also expects to see a rise in account closure complaints prompted by higher public awareness of the issue.
The body also expects to see car insurance complaints “continuing at a high level, partly due to widescale delays in being able to repair vehicles and impact of second-hand car market on valuations”.
The service, set up to resolve disputes between financial firms and customers by Parliament in 2001, says it received 93,114 complaints between January and June last year, in a report published in October.
It adds this is “significantly higher” than the 79,921 complaints we received in the last six months of 2022.
Over the coming year, the body says it has set a new target of resolving 90% of cases within five months, which “builds on the progress we have made to get consumers and businesses answers to disputes as quickly as possible while maintaining the quality of judgements”.
It will also cut case fees by £100 per case to £650 and reduce its compulsory and voluntary jurisdiction levies on businesses.
The body adds this is an effective £60m reduction in case fees and levy costs to businesses, once inflation and increases in the number of cases resolved are taken into consideration. The service is free to consumers.
Financial Ombudsman Service chief executive Abby Thomas says: “Looking ahead we know our service will see a high level of complaints and that those disputes will likely focus on the critical issues that impact people’s everyday lives.
“We are planning to be more ambitious next year, resolving complaints more quickly and improving the service we offer.
“At a time when all businesses are facing financial pressures, we are also reducing the cost of our service to industry.”
