Unaffordable lending was essentially the most complained about situation within the 2020/21 monetary yr, the Monetary Ombudsman Service (FOS) has revealed.
There have been 57,571 new complaints about unfair lending practices final yr, contributing to an total improve in FOS enquiries.
The ombudsman reported 454,259 new enquiries in the course of the 2020/21 monetary yr, and 278,033 new complaints – a rise of two per cent yr on yr.
Excluding the variety of PPI complaints, the figures discovered that the quantity of complaints rose by 58 per cent year-on-year.
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This improve was largely pushed by a 66 per cent improve in complaints about banking and credit score merchandise, FOS stated.
Inside this subsector, unaffordable lending was essentially the most complained about situation, whereas present accounts have been essentially the most complained about product.
House credit score merchandise had the very best uphold price, with 83 per cent of resolved complaints being upheld.
“The Monetary Ombudsman Service continues to offer a vital service, serving to folks with a whole bunch of 1000’s of complaints about monetary companies final yr,” stated Nausicaa Delfas, interim chief government and chief ombudsman of FOS.
“Over the previous yr, we’ve seen demand for our service improve considerably, and our groups are working to offer resolutions in circumstances as rapidly as they will.
“The sharp improve in complaints about points aside from PPI is a reminder that it has not often been extra necessary for monetary companies to help their prospects when issues go improper. As folks proceed to take care of the influence of Covid-19 on their lives and funds, they know they will come to our service in the event that they’re not pleased with how a monetary enterprise has handled them.”
Client safety model Which? famous that there had been roughly 18,000 complaints about fraud and financial institution switch scams, and warned that extra regulation is required to make sure that customers usually are not positioned in hurt’s manner.
“Not solely have fraud and financial institution switch scams grown in quantity prior to now yr, they’ve additionally grown in sophistication,” stated Gareth Shaw, head of cash at Which?.
“The trade code on push cost scams was designed to make sure that those that lose cash to criminals are reimbursed when they aren’t at fault, but a worrying tradition of banks blaming victims for falling for these methods has emerged.
“To cease companies wriggling out of giving victims their a reimbursement, the Fee Techniques Regulator ought to work with the federal government to determine necessary requirements of client safety for all banks and cost suppliers, in addition to ensuring all banks publish knowledge, together with their reimbursement charges, to indicate how effectively they’re stopping the harms attributable to financial institution switch fraud.”