The Financial Ombudsman Service received 57,000 complaints in the second quarter of 2026/27, around 3,400 more than in the first quarter of the year.
The increase in complaints was across product areas and complaint types, rather than being driven by a single issue.
Current accounts remained the most complained-about product this quarter, with 10,300 complaints, more than half of which related to fraud and scams. Credit cards ranked second, with 6,400 complaints, about issues including irresponsible or unaffordable lending, customer service and Section 75.
Car and motorcycle insurance remained a leading issue, with 4,400 complaints between July and September. Complaints were mostly about claim value, alongside customer service and claim liability.
Several wider factors may be contributing to the overall increase in complaints, including cost-of-living pressures and the growing use of AI tools by consumers using the service. The Ombudsman is working with the regulator and firms to further analyse complaints data and better understand the drivers behind the rise in complaints.
James Dipple-Johnstone, Chief Ombudsman at the Financial Ombudsman Service, said:
“We’re working with industry and regulators to understand rising complaints about everyday financial products, including the impact of cost-of-living pressures. Changes in how complaints are raised – including through AI tools – may also be playing a role.
“We’ll continue to share the insight we see through our casework, helping firms identify emerging problems sooner and resolve customer issues before they escalate.”
Excluding complaints about motor finance commission, 31% of cases resolved this quarter were upheld, broadly consistent with previous quarters. The overall uphold rate was 27% and continues to be affected by the closure of groups of motor finance commission cases that the service has determined will not succeed following legal developments.
The rise in complaints excluding motor finance is relatively recent, and uphold rates typically relate to previous quarters, so this latest increase in demand will not yet have had an impact.
Together with the Financial Conduct Authority (FCA) and the government, the Financial Ombudsman Service is taking forward a series of changes to modernise the UK’s redress system and the way in which the service operates within it.
New powers introduced on 1 October 2026 allow the Ombudsman to dismiss complaints so that it can focus its resources on the cases it was originally set up to resolve as an informal alternative to the courts. Later this autumn, the service will also consult on its budget for the next financial year, including plans to make its fee structure fairer to better reflect the work done on cases.
The Financial Ombudsman Service has also published its latest half-year individual companies’ data. It received 110,500 complaints between April and September 2026.
Banking and credit were the most complained about areas, with 74,900 complaints received in the first half of the year. Additionally, there were 25,800 complaints about insurance and 3,600 complaints about pensions.
This data is not comparable with previous half-year releases because reporting has changed from calendar year to financial year. The next half-year release will cover October to March.