The Financial Ombudsman Service (FOS) has revealed that it has received fewer complaints over the year to April compared to the previous year, falling 6% from 8,421 to 7,802.
However, there was an increase in the number of enquiries about mortgages, including those that did not result in a case being opened. This figure rose 5% over the year to April, from 9,540 to 10,043.
Overall complaints about the banking sector reached a 10-year high over the same timeframe, surging by 29% from 61,995 to 80,137.
The number of new complaints fell for most mortgage products, which includes second charge and residential loans, although there was a small increase in cases about equity and buy-to-let release.
Mortgage cases that were awarded in favour of the consumer remained 28%, the same figure as 2022/23.
The most complained about product was current accounts, with credit cards, car finance and car finance next on the list.
More complaints are being raised by claims management companies, which accounts for a quarter of all cases in 2023/24, up from 18% in the previous financial year.
The FOS said: It says: “Some representatives submit mass claims without determining whether they have merit, whilst others fail to respond to requests for evidence slowing down our investigations.
“When complaints are upheld, professional representatives can take a significant proportion of redress awarded to their clients.
There are plans to introduce a new rule to reduce spurious cases, which could see companies charged up to £250 to bring a case. If the complaint is upheld in favour of the consumer, this would then be reduced to £75.
Deputy Chief Ombudsman, James Dipple-Johnstone, said: “While [claims firms] have an important role to play in resolving financial disputes, they can also gain financially from our service without contributing to the running costs.
“There is sometimes little evidence of due diligence by some representatives to ensure claims they advance have merit.
“We are committed to making sure our service is as accessible as possible, while ensuring it remains free for all customers and that those with upheld complaints can keep all of any reward we make.
“Our proposed charges aim to ensure we cover the costs associated with resolving disputes while reflecting a fairer allocation of those costs.”
