The Financial Ombudsman Service (FOS) handled 305,726 complaints about financial products in 2024/25, which was the highest number in six years.
The previous year saw 198,798 complaints and the last time numbers were higher was during the payment protection insurance (PPI) issue in 2018/19.
Complaints about motor finance commission, fraud and scams, and credit cards hit record levels.
Motor finance commission complaints rose to 73,328 compared with 12,604 the year before.
Irresponsible and unaffordable lending complaints went up to 71,685 from 33,221.
Fraud and scam complaints increased to 35,416 from 27,675.
James Dipple-Johnstone, interim chief ombudsman at FOS, said: “Financial services have evolved significantly since we were set up 25 years ago.
“New financial products, the digitalisation of services and an increase in fraud and scams mean that we now see high levels of demand and an increasing number of complex cases.
“That is why we are working closely with HMT Treasury and the FCA to ensure the system – including the vital role our service plays within it – is fit for the future.”
About half of all complaints came from professional representatives, up from 25% the year before.
Most of this growth was in credit affordability and car finance complaints.
In 2024/25, 34% of complaints were upheld in the consumer’s favour, compared to 37% the year before.
27% of complaints brought by professional representatives were upheld, while 37% of cases brought directly by consumers were upheld.
The service resolved 227,253 complaints in 2024/25, up 18% on the previous year, and reduced the stock of older cases.
Jenny Simmonds, interim chief executive at FOS, said: “Although we resolved thousands of cases last year, we know there’s more to do which is why we are driving forward ambitious plans to transform our service.
“We are modernising our ways of working, investing in new tools and technologies, and building flexibility into our workforce.
“This modernisation programme, alongside reform to the wider dispute resolution system, will create a trusted and effective financial ombudsman, which in turn enables predictability and the confidence to support a strong economy.”
