The Financial Ombudsman Service expects to receive more than 181,000 consumer complaints in the 2024/25 financial year.
The increase is predicted to be influenced by prevalent issues such as unaffordable lending, travel and motor insurance complications, and rising fraud and scam cases.
Abby Thomas, chief executive and chief ombudsman, explained the trend: “Given cost-of-living pressures it’s imperative that, now more than ever, consumers understand their finances and are treated fairly and transparently by financial service providers.
“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.
“This includes perceived unaffordable lending, mortgages and complaints about people’s savings and current accounts.”
The Financial Ombudsman Service is aiming to resolve 90% of cases within five months in the next financial year, improving on its dispute resolution speed while maintaining judgement quality.
The consultation, closing on 30 January 2024, also includes plans to reduce the service’s cost to the industry.
Proposals include reducing the case fee to £650 per case and lowering compulsory and voluntary jurisdiction levies on businesses, amounting to a £60m reduction in case fee and levy costs.
Additionally, the Ombudsman is seeking feedback on proposed charges for professional representatives in case submissions, focusing on the impact on complaint volumes, different complainant groups, and required lead time for readiness.
