The number of complaints received by the Financial Ombudsman Service climbed by 49% in the second half of 2024.

The FOS said today it had received 141,846 complaints between July and December 2024, up from 95,349 a year earlier.

It said the increasing levels of complaints were driven by banking, credit disputes and a rise in motor finance commission cases.

There were 4,345 new decumulation life and pension complaints in in the period, compared to 3,996 in 2023.

There were 2,587 new complaints about investments in July to Decemeber 2024, compared to 2,311 in the same period in 2023.

In the six months FOS upheld a third, 33%, of complaints in consumers’ favour, compared to 36% in the second half of 2023.

However, only around a quarter, 25%, of complaints brought by professional representatives were found in favour of the consumer, compared to around 37% brought directly by consumers for free.

FOS said that nearly half, around 46%, of all complaints in the period were brought by professional representatives. That was more than double the 22% of complaints brought by professional representatives during the same period in 2023.

The growth in complaints from professional representatives was mainly focused on credit affordability and car finance complaints, FOS said.

Last month, FOS introduced a new fee model to charge professional representatives who bring more than 10 complaints a year to encourage representatives to submit better-evidenced complaints, considering their merits more diligently before referring them.

James Dipple-Johnstone, interim chief ombudsman, said: “Behind each case are customers waiting for an answer and we are committed to delivering fair, timely and effective resolutions for consumers and businesses alike.

“The high demand reflected in today’s data underscores not only the vital role our service plays, but also the pressing need for reform to ensure it remains fit for the future. That’s why we’re committed to strengthening the dispute resolution system – so it works better for everyone and reflects the needs of today's financial landscape.”

Last week Financial Planning network Rosemount Financial Solutions accused the Financial Ombudsman Service of damaging advice firms by acting as a “quasi-regulator.”