Many consumers have been dissatisfied with financial businesses’ decisions not to refund money lost as part of a scam. The FOS data shows an increasing uphold rate in this area. This suggests that some firms’ approach to combating financial crime cases and related complaints-handling may need to be fortified to avoid further regulatory scrutiny.

Tackling fraud and scams also remains a key priority for the FCA, which emphasises the need for firms to be vigilant and proactive in tackling these challenges and remediating where appropriate.

In addition to scams and other frauds, the FOS data also suggests that affordability remains a serious problem for many consumers.

Although the FOS said complaints about affordable lending fell in the first three months of this financial year, it said it had still received just over 5,000 new complaints about historic affordable lending, demonstrating how pervasive this issue is across the financial services sector and the wider economy.

This is underscored by the high FOS uphold rates across credit products where complaints about unaffordable lending are most prominent.

With the FCA also focusing heavily on the fair treatment of customers, particularly vulnerable customers, firms will need to keep their obligations in this regard at the top of their agenda in terms of how they approach affordability issues and offer suitable support.

Complaint types in decline

While it would be unwise to predict how the pandemic will develop over…

Read more…