Abby Thomas

This is up from 43,953 complaints reported in the same period in 2023/24.

There is a notable shift in that around half of the complaints received now come from professional representatives, compared to 17% in the same period last year. However, their involvement doesn’t guarantee a better outcome, with only 25% of their claims upheld compared to 40% for those brought directly by consumers.

Most complaint issues brought by professional representatives relate to either irresponsible and unaffordable lending or motor finance.

Credit cards were the most complained about product in the first three months of this financial year, receiving 18,175 complaints. The vast majority of these complaints – 15,580 – were about perceived irresponsible and unaffordable lending. Of this figure, over half were brought by professional representatives.

Hire purchase (motor) was the second most complained about product, with 15,925 complaints, of which around three quarters are in relation to motor finance commission. Over 90% of these motor finance commission complaints were brought by professional representatives.

In recent months, the FOS has been consulting on a proposed case fee for professional representatives, aiming to make the fee model fairer and better reflect the FOS’ costs. An update on these proposals will be provided in the coming months.

Abby Thomas, chief executive and chief ombudsman of the Financial Ombudsman Service, said: “It’s concerning that we’re continuing to see large volumes of complaints, particularly considering the cost-of-living crisis.

“It’s vital that businesses are open and transparent with their customers, treating them with fairness and understanding.

“Whilst professional representatives have an important role to play, they must ensure that their cases are well evidenced and have merit.

“If consumers have a dispute with their bank or finance provider they can come directly to our easy-to-use service for free and we will see if we can help.”