FCA complaints - a worsening picture

Increasing numbers of complaints, and the lack of real resolution by firms, is not new news, but regulators are becoming impatient for change. After years of TCF and more recently Consumer Duty implementation, it is not surprising that they are questioning when they will see improved outcomes. So why are regulators becoming increasingly tired with the lack of progress and what is behind their increasing frustration?

FCA complaints data has, yet again, recorded increases in many core sectors. Banking and credit card complaints were up 3.2%, home finance complaints were up 3.7% and investment complaints were up 3.4%. Overall, 290 individual firms are now reporting 1,000 or more complaints annually! While the continuing reduction in PPI complaints masks the overall decrease (-1%) in total complaints, numbers are clearly going in the wrong direction in other categories. Coinciding with the FCA results, FOS has confirmed a similar pattern, reporting that credit card complaints have hit an all-time high. In addition, it reports that the other four categories in the top five ‘most complained about products’ were current accounts, hire purchase (motor), car/motorcycle insurance and buildings insurance. Each of these categories also saw year-on-year increases.

So, firms’ complaint handling procedures are coming under the regulator’s gaze again. Given the FCA focus on four Consumer Duty outcomes (products and services, price and value, consumer understanding and consumer support) the emphasis on numbers of complaints, complaint handling procedures and outcomes is only going to become more intensive.

We have helped many firms with robust independent assessments which include, but are not limited to, the review of complaints gap analysis, root cause assessments, fair value reviews, process evaluations, quality sampling and first- and second-line effectiveness.

Rockstead is in a unique position to advise firms on these matters, as we have appropriately experienced subject matter experts who collaborate with firms across most financial sectors. This means we make proportionate recommendations and deliver effective change implementation as well as progress monitoring.?Get in touch to discuss how we can help with your complaint handling and remember to ask for a copy of our regulatory compliance case study, to see an example of how we work with clients.