New data released by the FCA finds that in H1 2025, financial services firms received 1.85m complaints, a 4% increase from H2 2024 (1.78m).
Since 2021, complaints have stayed relatively constant between 1.7m and 2.0m.
The total amount of redress paid in H1 was £283m, a 20% increase on the H2 2024 figure of £236m, with the average compensation payment rising from £207 to £238. The percentage of complaints that were upheld by firms remained around 57%.
The product groups that experienced an increase in their complaint numbers were banking and credit cards, decumulation & pensions - including a 38% increase for trust-based pensions - and investments.
The product groups that experienced a decrease in their complaint numbers were home finance, which decreased by 6% from 83,936 to 78,641, and insurance & pure protection, down by 0.2%.
Phil Smith, senior actuarial consultant at Broadstone, commented: “Given the scrutiny on consumer outcomes and fair treatment from the regulator, it is perhaps unsurprising that we are seeing increases in complaints.
“With the number of complaints being upheld remaining consistently high as well as increases in both total and average compensation payments, it is clear that firms have work to do to ensure they are treating their customers fairly.
“Redress remains a costly outgoing for firms – as the ongoing motor finance case should be a reminder of – so it quite literally pays to treat customers well.”
