Ombudsman credit card complaints reach record high

COMPLAINTS about credit cards reached a record high in the final three months of last year, according to the Financial Ombudsman Service (FOS).

Consumers lodged 5,660 gripes about their credit cards between October 1 2023 and December 31 2023 – the highest level the service has seen for a three-month-period. Its comparable data goes back to the first quarter of the financial year 2014/15. The organisation, which acts as a free resolution service for consumers and their financial providers, said 3,086 of those complaints were due to perceived unaffordable or irresponsible lending by financial firms.

During the same period a year earlier, there had been 3,216 credit card complaints, of which 665 were about irresponsible or unaffordable lending.

Nearly three-quarters of the credit card and unaffordable lending complaints highlighted in the new figures were brought by professional representatives, such as claims management companies and law firms, up from a quarter of these complaints a year earlier.

The FOS said consumer complaints have indicated that in particular, people believe financial providers should have stepped in over persistently high credit balances, high credit limits or provided lower interest rates.

Abby Thomas, chief executive and chief ombudsman of the FOS, said:

“Given that many people are struggling in the current economic environment, it’s concerning to see such a significant rise in credit card complaints. Owing significant amounts of debt can be stressful and it’s important that consumers are treated fairly and transparently by financial service providers.

“Lenders have a duty to support their customers whatever their circumstances and are obliged to help people who are struggling with debt.”