The Financial Ombudsman Service, the government-backed independent watchdog that aims to settle disputes between consumers and financial businesses, reported a record 2.3m disputes in the past 12 months - equivalent to 40,000 a week.
In its annual review for 2013/2014, the FOS says it answered 2.3 million enquiries from consumers and settled a record 518,778 disputes – more than double the number of last year. Payment protection insurance (PPI) made up 78% of all cases, with the number of PPI complaints rising 6% to 399,939. As reported yesterday on Financial Planner Online, the number of Sipps complaints doubled compared to the previous year although they formed only a very small fraction of overall complaints.
Despite the rise overall, the number of complaints about pensions and investments for the year fell from 19,834 to 15,938. Some 34% of pension claims were upheld and 51% of portfolio management and stockbroking complaints were upheld. IFAs accounted for only 0.5% of all complaints and the FOS upheld 42% of complaints against them.
There was also a sharp rise in complaints about film partnerships.
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Other key statistics from the annual review:

• In 58% of the cases the Ombudsman resolved it found in the consumer's favour.
• Almost a quarter of the enquiries the FOS received were about general financial problems and concerns – and weren't product-specific.
• 1 in 6 people across the UK said they'd had a problem with a financial product or service.
• Around one in five initial enquiries turned into a formal dispute – a record 512,167 new complaints.
• Four of the UK's largest banking groups accounted for 63% of all complaints we received.
• Other than PPI, the Ombudsman resolved seven out of ten (71%) complaints within six months.
• People from Widnes were the most likely to phone the Ombudsman and consumers from the North East more likely to complain about PPI.
• A fifth of people who brought a complaint to the ombudsman said they had a disability.
• 77% of people surveyed said they were aware of the Financial Ombudsman Service, and 70% said they trusted the organisation.

Tony Boorman, chief ombudsman, said: "It's been an unprecedented twelve months for the Ombudsman by anyone's standards. Complaints continued at record levels – and we resolved over half a million cases during the year.
"Whether it's dealing with a complex pension complaint or problems with a mobile banking app, the financial services sector continues to face the challenge of putting the customer at the centre of their business."
On Sipps, the FOS said there had been a 50% rise in complaints in the past year. In the 12 months to the end of March, the watchdog received 1,036 complaints about Sipps, a 49% rise on the 697 received the previous year. Most complaints were from savers who had been allowed to invest in unsuitable or unregulated schemes. The Ombudsman upheld 63% of Sipp complaints.