The Financial Ombudsman Service said consumers continued to register for “large amounts of complaints” in the last six months of last year, driven by disputes over auto financing, bank fraud and credit affordability.
Dispute Services received 141,856 complaints between July and December last year, an increase of 67% a year ago in the same period.
Mortgage and home financing complaints are the third largest area that attracts complaints, at 3,526 in the period, but 9% lower than 12 months ago.
But bank and credit cases, including auto financing disputes, have attracted the biggest attention, attracting 109,155 complaints, jumping 76% a year ago.
Many critics fear that wrong sales of auto financing would be comparable to payment protection insurance legends, which involved $64 million in claims and losses of about £50 billion.
General insurance and pure protection complaints ranked second in the region at 22,075, down 3.4% 12 months ago.
Dispute Services said about 46% of complaints came through claims management companies, up from 22% a year ago.
“This growth is mainly concentrated on credit affordability and auto financing complaints,” the agency said.
The Treasury Department’s economic secretary Emma Reynolds will check whether the dispute service acts as a “fair dispute settlement service, promptly and effectively handling complaints against financial services companies.”
Interim Ombudsman James Dipple-Johnstone said: “The high demand in today’s data not only emphasizes the crucial role our service plays, but also forces reforms to require reforms to ensure it remains suitable for the future.
“That’s why we are committed to strengthening the dispute settlement system – so it’s better for everyone and reflects the needs of today’s financial landscape.”
Dispute agencies said in February that they would start collecting from claims management companies that filed complaints on behalf of clients for the first time.
It said the companies stood out during the payment protection insurance scandal and would be able to bring the service a year of free.
But thereafter, they will be £250 per case from April. They will receive a £175 rebate, “if the result is good for consumers”.
