The UK’s Financial Ombudsman Service is expecting more than 181,000 consumer complaints in the next year, driven in part by an increase in financial fraud and scams.
Disputed transactions, driven by the increasing volume of financial fraud and scams, will be a key cause of complaints, alongside everyday issues such as unaffordable lending, travel and motor insurance.
Scam complaints have risen as authorised push payments (APP) fraud has soared in the UK, with losses totalling nearly £500 million in the last year.
In 2021, consumer group Which? reported that up to three quarters of APP fraud cases referred to the Banking Ombudsman found in favour of the customer after the banks involved initially rejected applications for reimbursement.
In October, the Payment Systems Regulator will introduce measures to improve protections for victims of APP fraud but the FOS still expects to see rising transaction disputes in the immediate future.
The service has set itself a target for the financial year of resolving 90% of cases within five months.
Abby Thomas, chief ombudsman, says: “We are planning to be more ambitious next year, resolving complaints more quickly and improving the service we offer.”
Source: Finextra
