The UK’s Financial Ombudsman Service anticipates over 181,000 consumer complaints in the coming year, largely influenced by a rise in financial fraud and scams.
Disputed transactions, fueled by the growing prevalence of financial fraud and scams, are expected to be a major contributor to these complaints. Everyday issues, such as unaffordable lending, travel problems, and motor insurance disputes, will also lead to increased complaints.
Scam-related complaints have surged, particularly due to a significant rise in authorised push payment (APP) fraud, which has resulted in nearly £500 million in losses over the past year. In 2021, consumer group Which? revealed that up to three-quarters of APP fraud cases brought to the Banking Ombudsman were resolved in favor of the customer after banks initially denied reimbursement claims.
In an effort to bolster protections for APP fraud victims, the Payment Systems Regulator will introduce measures in October. However, the Financial Ombudsman Service still anticipates a continued uptick in transaction disputes in the near term.
The service aims to resolve 90% of complaints within five months for the financial year. Abby Thomas, chief ombudsman, stated, “We are planning to be more ambitious next year, resolving complaints more quickly and enhancing the service we provide.”