Saturday, 25 October 2025
Consumer complaints about financial products in the UK rose modestly in the first six months of 2025, according to new figures from the Financial Conduct Authority. The data shows that financial firms received around 1.85 million complaints between January and June, up from 1.78 million in the previous six-month period. Although the overall volume has remained relatively steady since 2021, the latest figures highlight ongoing challenges for banks, insurers and investment providers in maintaining customer satisfaction.
The banking and credit card sector recorded the largest increase in complaints, with a rise of just over seven percent. Issues related to current accounts and payments remained particularly prominent. The number of complaints concerning investment products also climbed, up by roughly ten percent, indicating continued frustration among consumers over performance, advice quality and transparency. The pensions and retirement segment experienced a smaller but still notable rise of around five percent, driven in part by an increase in cases involving trust-based pension schemes.
In contrast, the number of complaints related to home finance, including mortgages, declined by about six percent. Complaints in the insurance sector were largely unchanged, edging down by less than one percent. Despite this slight drop, insurance continues to account for one of the largest overall shares of consumer complaints, particularly regarding claims management and policy cancellations.
The total compensation paid by firms during the period reached approximately £283 million, marking an increase of around twenty percent compared to the previous half-year. The proportion of cases upheld in favour of consumers also rose slightly, to nearly fifty-eight percent. This suggests that while firms are resolving a greater number of complaints, a significant share of customers continue to experience service or product-related issues that require formal redress.
Under current UK regulations, companies that handle more than 500 complaints in a six-month period must publish their complaint data. Around 290 firms met this threshold in early 2025, together accounting for the vast majority of all reported cases. Their data, released by the FCA, includes information about complaint volumes, resolution times and how often customer grievances are upheld. More than 3,000 regulated firms reported at least one complaint during the period, underscoring the breadth of consumer engagement across the financial services industry.
While the overall complaint numbers have shown little movement in recent years, their persistence points to deep-seated challenges that continue to affect consumer confidence. The figures suggest that problems such as digital banking errors, complex pension structures and delayed responses remain areas requiring closer attention. By publishing this data twice a year, the regulator aims to encourage transparency, help consumers make informed choices and push firms to raise service standards in an industry still working to rebuild public trust.
Source: CMS
