The Financial Ombudsman Service processed 68,000 new complaints between April and June 2025, a 9% fall year-on-year.

The same period last year saw 74,600 new complaints.

Of the cases it resolved in the quarter, it upheld 31% in favour of the consumer.

The primary driver of the drop in case numbers was a fall in the number of complaints about everyday financial products such as current accounts and credit cards.

The most complained about products for the quarter were hire purchase (motor) with 24,300 new cases, current accounts with 7,800 new cases, and credit cards with 6,600 new cases.

While the areas traditionally covered by Financial Planners saw lower levels of complaints, uphold rates from the Ombudsman were higher.

Personal pensions (excluding SIPPs) remained one of the most common product areas for complaints, with 1,122 complaints during the quarter. Of these 51% were upheld.

The number of complaints submitted to the Ombudsman regarding defined benefit pension transfers to SIPPs continued to fall with 85 new cases lodged during the quarter. The Ombudsman upheld 55% DB transfer claims during the quarter.

The fall in case numbers was particularly significant across insurance and motor finance.

Complaints about perceived irresponsible and unaffordable lending halved. In the first three months of this financial year, the Financial Ombudsman received 10,000 new cases, compared to 21,600 at the same time in 2024/25.

Similarly, the most complained about issue – motor finance commission – has dropped from 36,000 cases in the last three months of 2024/25 to 21,500 cases processed in the first quarter of this financial year.

James Dipple-Johnstone, interim chief ombudsman at the Financial Ombudsman Service, said the Ombudsman was focused on working to overhaul the complaints system.

He said: “Following a year of extraordinary demand, we recently announced reforms to modernise the UK’s redress system, making it more agile and responsive and a much better fit for today’s economy.

“We have acted on feedback from our Call for Input and reviewed a range of our processes – and have already made changes. We’ll continue to listen to our industry partners so that, working together, we can have a system that’s fit for the future.”

In last month’s Mansion House speech Chancellor Rachel Reeves announced a raft of financial services reforms including changes to the FOS.

She announced an ‘absolute limit’ of 10 years for claims to the Financial Ombudsman Service to speed up the time consumers get redress for their complaints and returning the FOS to its “original purpose” as a simple arbitration service rather than being a “quasi regulator.”