Financial Ombudsman Complaints Hit Two-Year Low

The UK’s Financial Ombudsman Service (FOS) has recorded its lowest level of complaint volumes in two years, driven by regulatory intervention, procedural reforms, and a sharp decline in motor finance-related disputes. The data, covering the last quarter of 2025, indicate a return to complaint levels last observed in 2023/24.

Between October and December 2025, the FOS received 47,300 new complaints, a significant fall from 68,400 during the same period a year earlier. Complaint volumes have stabilised over the past six months, with 46,300 new cases registered in the second quarter of 2025/26.

The decline is largely attributed to the Financial Conduct Authority’s (FCA) temporary pause on complaint handling and its proposed redress scheme for motor finance commission cases. Complaints in this category fell dramatically to just 400 in the most recent quarter, down from 14,400 a year prior—a reduction of over 97%.

In addition, the Ombudsman Service has introduced a series of internal reforms, including new charges for professional representatives. These measures have led to better-evidenced submissions and fewer cases being withdrawn or abandoned. Withdrawals and abandonments from professional representatives have fallen from more than one-third in 2024/25 to 19% so far this financial year.

James Dipple-Johnstone, Interim Chief Ombudsman, commented:

“We are improving our service to ensure we can underpin confidence in financial services now and in the future. Our case volumes are returning to a steady state as the measures we have implemented ensure complaints are better evidenced and ready to be investigated.”

He added that the changes already introduced, and those planned for the future, will enable the Service to concentrate on its core purpose: providing a quick, informal, and high-quality dispute resolution system.

Excluding motor finance commission cases, the FOS upheld 31% of complaints in the last quarter. Meanwhile, the FCA responded to a Which? super-complaint regarding travel insurance claims in December, pledging to expand work aimed at raising standards in the home and travel insurance markets.

Quarterly Complaint Statistics (UK Financial Ombudsman Service)

The FOS expects these trends to continue as reforms take further effect, signalling a more efficient, evidence-led approach to financial dispute resolution.