Complaints about investments and pensions have decreased; how does your provider compare?

Complaints about banking, pensions, and investments have decreased, according to data from the Financial Conduct Authority

What is the difference between your provider?

It's unclear whether consumers are happier or simply less inclined to voice concerns about their financial products, but fewer investors and savers are complaining about them.

The second half of 2024 saw 1 point78 million complaints against financial services firms, according to data from the Financial Conduct Authority (FCA). This represents a 4 point3 percent drop from the first half of the year.

Since 2021, the number of complaints has remained largely unchanged at between 1.7 million and 2 million, according to the City watchdog.

It follows new Consumer Duty regulations that impose additional obligations on financial providers regarding their customer service.

In terms of interest, fees, and product terms, providers are now required to be more open.

The number of complaints for every product group decreased, suggesting that this strategy is effective.

However, some argue that complaining is simply too difficult.

For a variety of reasons, fewer people are complaining, according to Michelle Lawson, director of Lawson Financial.

"First of all, consumers are now time-constrained, and it is made too difficult for them to write or email." Many also believe that there is little point because nothing will be done and their complaint will only be addressed with a letter of apology or a small portion of insignificant compensation. Additionally, we hear far too frequently that lessons will be learned, but this is rarely the case. It's a perfect storm, which makes people ask, "What's the point".

Yellow Brick Mortgages managing director Stephen Perkins is likewise skeptical.

He stated: "I would like to believe that Consumer Duty is in charge of better customer service and fairness, which leads to fewer complaints. Nevertheless, because the system requires the company to self-declare these figures in their returns, the FCA figures reflect reported complaints.

Therefore, it might also be inaccurate reporting or problems that are promptly addressed and fixed before they are formally reported. The other option is if customers have lost faith in the ombudsman and financial firms and believe that they are more trouble than help.

What is the source of the complaints from customers?

Every six months, the FCA releases data on firm complaints, based on companies that have received 500 or more complaints in that time frame.

At the end of 2024, there were 839,526 complaints about credit cards and banking, down 1 point3 percent from 850,983 in the first half of the year.

Complaints about decumulation and pensions fell 4 points to 89,172, while those about investments fell 15 points to 52,971.

The three products that consumers complained about the mostcredit cards, auto finance, and current accountssaw declines.

The FCA is currently considering a redress scheme for undisclosed motor finance commissions, so this could change.

Last year, the proportion of complaints that were upheld by businesses stayed at about 57%, but 236 million in redress was paid down 3%.

Financial firms were the subject of the most complaints.

According to FCA data, HSBC had the most complaints filed in the second half of 2024 (98,421).

However, at 59 to 95 percent, its upheld complaints rate is rather low.

59.91 percent of the 91,184 banking and credit card complaints that were filed against the bank were upheld.

In the second half of 2024, Aviva received the most pension-related complaints (16,030), with 66.52 percent of them being upheld.

Regarding investments, the company that received the most complaints was Hargreaves Lansdown. In the second half of the year, 3,109 complaints were filed against the massive DIY investing platform. Only 5068% of them were upheld.

How to file a complaint regarding your bank.

Writing a letter or email to your provider's complaints department is the first step if you are dissatisfied with a financial service or believe you were misled.

Only regulated products from FCA-approved companies are subject to complaints. You can't be upset about the performance of the stock market, but that also applies to investments, insurance, pensions, and home mortgages.

Responses from providers must be submitted within eight weeks.

You can then file a complaint with the Financial Ombudsman Service if you are dissatisfied with the outcome or have not heard back after eight weeks. On the FOS website, complaint forms are available for download.

Before deciding whether to uphold the complaint and grant compensation, it will hear your concerns and speak with the financial firm to hear their side of the story. According to the most recent FOS data, in the first quarter of the 2024 - 2025 fiscal year, 37% of complaints were upheld.

There is no fee to file a complaint with the FOS or your financial provider. To file a complaint, you don't have to hire a professional representative. Although they may take a sizable portion of any compensation you receive, claims management firms can assist with complaints on a no-win, no-fee basis.

Taking legal action is an additional choice if you are not satisfied with the complaints you have made to the FOS or your financial provider. This will cost you money, though, because you might have to pay for court costs and legal counsel.