The Financial Ombudsman Service received 118,035 new complaints in the first six months of 2020. This represents a 17% decrease compared to the 141,765 complaints in the second half of 2019.
However, payment protection insurance complaints to FOS are understandably continuing to decline sharply, given it is now more than a year since the Financial Conduct Authority’s deadline for complaining to firms about PPI sales passed. The 41,411 new complaints about PPI represent a fall of 37% from the 65,878 received by FOS between July and December 2019, which means that non-PPI complaints actually rose slightly between the two reporting periods – from 75,887 to 76,624.
In the first half of 2020, FOS upheld 31% of the complaint cases it resolved. However, again the Service recognises that PPI is very much ‘on the way out’ and has therefore also published a separate uphold figure for all non-PPI complaints in the same period, which is somewhat higher at 42%.
49% of consumer credit complaints were upheld in H1 2020, and this is the highest of any business sector.
This latest FOS data also includes details of the complaints data for individual firms. As expected, some of the high street banks occupy the top spots when we look at which firms received most complaints. However, at least three non-mainstream lending firms received more complaints in H1 2020 than one of the best-known names in the banking world.
Some specialist credit firms also have very high uphold rates for the first half of 2020, and these include:
- A guarantor lender (87%)
- A provider of personal loans (63%)
- A firm that lends both guarantor and unsecured personal loans (73%)
- A rent-to-own firm (77%)
- A provider of retail credit (69%)
- A provider of personal loans and credit cards (shown as having an overall 84% uphold rate and an 85% uphold rate for credit activities)
- A short-term lender (80%)
- A car finance firm (67%)
- A provider of various non-mainstream credit (74%)
- A personal loan provider (70%)
- A pawnbroking firm (61%)
- A firm that is officially a bank, but which specialises in providing loans and store cards (77%)
- A short-term revolving credit provider (67%)
- A provider of personal and logbook loans (63%)
- A doorstep lender (65%)
- Another doorstep lender (74%)
- A provider of home-collected credit (75%)
- A firm that is officially a bank, but which specialises in providing loans (94%)
- A provider of mobile finance (81%)
- A car finance firm (shown as having an overall 65% uphold rate and a 66% uphold rate for credit activities)
Claims management companies also had an uphold rate that was above average, at 44%. Across other sectors, uphold rates were lower: for both life & pensions and PPI, just 16% of complaints were upheld. The uphold rate was 18% for investments, 23% for mortgages & home finance and 29% for general insurance & pure protection (other than PPI).
The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware of the facts, circumstances or legal position may change after publication of the article