Consumers continue to register “high volumes of complaints” notching up almost 142,000 cases in the last six months of last year, driven by motor finance, banking fraud and credit affordability disputes, says the Financial Ombudsman Service.
The disputes service received 141,846 complaints between July and December last year, a 49% jump on the same period a year ago.
Mortgage and home finance complaints were the third highest area to attract grievances, at 3,526 in the period, but this was 9% lower than 12 months ago.
However, banking and credit cases, which includes motor finance disputes, drew the most attention attracting 109,155 complaints, jumping 76% on a year ago.
Many critics fear motor finance mis-selling could rival the payment protection insurance saga, which involved 64 million claims and cost banks around £50bn.
General insurance and pure protection complaints were second in this area at 22,075, down 3.4% on 12 months ago.
The disputes service says around 46% of complaints came through claims management companies compared to 22% a year ago.
“This growth has mainly been focused on credit affordability and car finance complaints,” says the agency.
The Treasury confirmed last month that Economic Secretary to the Treasury Emma Reynolds will examine whether the disputes service acts as an “impartial dispute resolution service which quickly and effectively deals with complaints against financial services firms”.
Interim chief ombudsman James Dipple-Johnstone says: “The high demand reflected in today’s data underscores not only the vital role our service plays, but also the pressing need for reform to ensure it remains fit for the future.
“That’s why we’re committed to strengthening the dispute resolution system — so it works better for everyone and reflects the needs of today’s financial landscape.”
In February, the disputes body said it would begin charging claims management companies who bring complaints on behalf of customers for the first time.
It said these firms, which came to prominence during the payment protection insurance scandal, will be able to bring ten cases to the service for free a year.
But after that, they will be charged £250 a case from April. They will receive a £175 rebate “if the outcome is in favour of the consumer”.
