Financial Ombudsman complaints fall to two-year low amid motor finance slowdown

The UK’s Financial Ombudsman Service (FOS) has reported its lowest complaint volumes in two years, with new cases returning to levels last seen in 2023/24.

Figures published show the Ombudsman received 47,300 complaints between October and December 2025, down sharply from 68,400 in the same quarter a year earlier. This suggests volumes have stabilised over the past six months, with 46,300 new cases received in Q2 2025/26.

The drop is partly linked to the UK Financial Conduct Authority’s (FCA) complaint-handling pause and proposed redress scheme for motor finance commission cases, which has significantly reduced related referrals. The FOS recorded just 400 such complaints in the last quarter, compared with 14,400 a year ago.

At the same time, the Service is undergoing major reforms, including the introduction of charges for professional representatives. As a result, the Ombudsman says it is receiving better-evidenced submissions and seeing fewer withdrawn or abandoned cases. Withdrawals and abandonments from professional representatives have fallen from more than a third in 2024/25 to 19% so far this financial year.

James Dipple-Johnstone, Interim Chief Ombudsman, said: “We are improving our service to ensure we can help underpin confidence in financial services now and in the future… our case volumes are returning to a steady state as measures we have implemented ensure the complaints that come to us are better evidenced and ready to be investigated.”

He added: “The changes we have already introduced – and those we plan to make in the future – will allow us to focus on getting back to our core purpose… [providing] a quick, informal, and high-quality dispute resolution system.”

Excluding motor finance commission cases, the uphold rate was 31% for the last quarter.

In December, the FCA issued its response to a Which? super-complaint about travel insurance claims handling, stating that it was expanding the significant work planned to improve standards in the home and travel insurance markets.