According to figures from the FOS, this rise in complaints was driven by banking fraud, credit affordability disputes and motor finance commission cases.
The FOS said this was a “significant increase in caseload” that underlined how the service is working closely with HM Treasury and the Financial Conduct Authority (FCA) to modernise the “dispute resolution system”.
The modernisation will allow the FOS to “continue to deliver for consumers, small businesses and financial services as a quick and informal resolution service as an alternative to the courts”.
Around 109,155 of the complaints during the period were from new banking and credit, compared to 62,139 in the same period in 2023.
Approximately 22,075 of the complaints were for new general insurance and pure protection in the second half of 2024, a drop from 22,845 in 2023. The report noted that there were around 3,526 new mortgage and home finance complaints in July to December 2024, compared to 3,877 in July to December 2023.
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There were around 4,345 new decumulation life and pension complaints in the second half of the year in 2024, a rise from 3,996 in the same period in 2023. Approximately 2,587 new complaints focused on investments in July to December 2024, an increase from 2,311 in July to December 2023.
The report added that there were 158 new complaints about funeral planning in the period, compared to 181 in the same period in 2023.
During the period, the FOS said it upheld a third of complaints in consumers’ favour, a slight drop from 36% in the second half of 2023.
Nearly half of complaints in the period came through professional representatives. This is an increase of 22% compared to the same period in 2023, and the growth was attributed to credit affordability and car finance complaints.
The FOS recently introduced a fee model to charge professional representatives who bring over 10 complaints per year, which aims to offer a fairer fee arrangement and “encourage these representatives to submit better-evidenced complaints, considering their merits more diligently before referring them”.
The dispute resolution service has also cited the staffing capacity to resolve complaints and building flexibility into the workforce so it can “respond to changes in demand”.
Only a quarter of complaints brought by professional representatives were found in favour of the consumer, which is a drop from 37% brought by consumers.
James Dipple-Johnstone, interim chief ombudsman at the FOS, said: “Behind each case are customers waiting for an answer and we are committed to delivering fair, timely and effective resolutions for consumers and businesses alike.
“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.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: FOS receives nearly 142,000 complaints in second half of 2024
