The Financial Conduct Authority (FCA) revealed that household finance complaints fell by 6% in the first half of 2025 compared with the previous six months, while overall financial services complaints increased by 4%.
The data shows housing finance complaints fell from 83,936 in the second half of 2024 to 78,641 in the first half of 2025.
Meanwhile, financial services firms received 1.85 million complaints, up from 1.78 million in the second half of last year.
Since the first half of 2021, the number of complaints has remained relatively stable between 1.7 million and 2 million.
Total compensation paid in the first half of this year was £283 million, an increase of 20% from £236 million in the last six months of 2024, with the average compensation amount rising from £207 to £238.
From the second half of 2024 to the first half of 2025, the company’s proportion of complaints that upheld the original verdict remained at around 57%.
Product categories with an increase in complaints included banks and credit cards, which were up 7%, accumulations and pensions, which were up 6%, and investments, which were up 10%.
In addition to household finance complaints, insurance and pure protection complaints also fell by 0.2%.
Commenting on the latest figures, Phil Smith, senior actuarial adviser at Broadstone, said: “Given the regulator’s scrutiny of consumer outcomes and fair treatment, it is perhaps unsurprising that we are seeing an increase in complaints.”
“With the number of complaints continuing to remain high and both total and average compensation awards increasing, it is clear that companies need to work hard to ensure that customers are treated fairly.”
“Redress remains a costly expense for businesses – as the ongoing car finance cases should remind people – so it does pay to treat customers well.”
