You are here: Home - Saving-Banking -

Fraud and scams drive rise in current account complaints

Current accounts topped the list of the most complained about financial products due to a rise in fraud and scam complaints, according to the Financial Ombudsman Service (FOS).

In its latest report, FOS revealed that 6,082 complaints were made about current accounts between October and December last year reflecting a 10% rise in complaints compared to the same period in 2021.

Almost 40% of current account complaints were upheld in the customer’s favour.

The rise in fraud and scam current account complaints, which includes Authorised Push Payment (APP), identification theft and chip and pin disputes, was up almost two thirds from 2,884 in the final three months of 2021 to 3,768 in the same period last year.

The effects of fraud and scam attacks were felt by customers across all financial products, the ombudsman said. It received in total 5,849 fraud and scam grievances between October and December last year, a rise of 30% year on year, with just less than half upheld in the customer’s favour.

FOS said the increase in complaints was mainly being driven by third-party activity brought about by claims management companies and law firms.

Overall, between October and December, the ombudsman received 41,303 new complaints about financial products and upheld 35% of the complaints that were resolved in the latest quarter.

HP complaints on the rise

Credit cards, car hire purchase (HP) agreements and car and motorbike insurance also featured high up in the FOS report. HP complaints have risen for the last five consecutive quarters. Most recently, the majority of HP complaints were about charges, fees and commission.

In cases of vehicle insurance, FOS said it had seen complaints where the policy holder had argued their car was worth more than their insurer had given them, following a theft or an accident where the car was written off.

Where the ombudsman upheld these complaints, it was often because it found the insurer’s offer was unfair. ‘We saw examples of insurers not considering all the available information, which tended to lead to offers that were less favourable,’ it added.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week