UK consumers complained about banking and payments, credit and loans much more during the pandemic (surprise, surprise!)

The FOS has released its latest quarterly and annual complaints data, showing that interactions with the FOS about banking and payment services, credit card accounts, investments and loans, and savings and bonds all grew substantially during the pandemic. The overall number of new complaints received has increased by 2% to 278,033, compared with 271,468 complaints received last financial year. However, when PPI complaints are excluded, the figures reveal a 58% increase in the volume of complaints received. The sharp increase in non-PPI complaints has largely been driven by a 66% increase in complaints about banking and credit products, with 170,648 complaints being received in 2020/21, compared with 103,070 in 2019/20.

Within the banking and credit category, the data shows:

• Current accounts were the most complained about product, with 23,678 new complaints.
• Unaffordable lending was the most complained about issue, with 57,571 new complaints.
• Home credit products had the highest uphold rate, with 83% of resolved complaints being upheld.
• Complaints about online banking and payment accounts increased by 226%, highlighting the pandemic’s impact on how consumers access and move their money.

This is largely unsurprising given the significant effect the pandemic has had on day-to-day lives, but may not bode well for financial institutions as regulators begin to shift away from managing the impact of the pandemic and begin to focus more on BAU priorities and are increasingly scrutinizing how firms have responded to the crisis including treatment of their customers.