Fos reports 53,600 cases in Q2
The Financial Ombudsman Service (Fos) reported receiving 53,600 cases in the second quarter of the 2026/27 reporting period, marking a rise from the previous year’s figures.
Complaint volumes surge across key product lines
Current accounts led the tally with 8,900 complaints, a spike largely attributed to fraud and scams. By contrast, the same product generated 8,600 cases in the first quarter of 2026 and 7,800 in the comparable period of 2025.
Insurance complaints also climbed. Car and motorcycle policies accounted for 4,100 cases, up from 2,800 a year earlier. The increase followed a rise from 4,000 complaints in the first quarter of 2026, with consumers flagging claim values, policy cancellations and delays.
Travel insurance saw a 30 percent year‑on‑year jump, reaching 1,300 cases. The surge is linked to travel disruptions tied to the ongoing conflict in the Middle East. Declined‑claim disputes remained the most common issue, with 1,200 complaints lodged in the first quarter of 2026.
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Changes in how complaints are submitted
Direct submissions by consumers grew, while referrals by professional representatives, family or friends fell to 10 percent of total cases in Q1 2026/27, down from 45 percent a year earlier. Professional representatives alone handled 1,800 cases, representing 3 percent of the overall caseload.
The overall uphold rate for the quarter stood at 26 percent, a figure affected by the closure of motor‑finance commission (MFC) cases. Excluding those, the uphold rate across all products rose to 30 percent.
Resolution speed improved as well.
In April‑June 2026, 51 percent of cases closed within three months of investigation start, compared with 46 percent for the same period in 2025.
From a broader perspective, the rise in complaints highlights the growing complexity of financial products and the need for clearer consumer protections. As new offerings such as buy‑now‑pay‑later expand, regulators and ombudsmen must adapt their frameworks to keep pace with evolving market risks.
James Dipple‑Johnstone, chief ombudsman at the Fos, said the service is undertaking its biggest reforms since inception. “As financial services continue to evolve, we are delivering the biggest reforms to our service since we were created to ensure we develop alongside them,” he stated. He added that the expanded jurisdiction, now covering products like buy‑now‑pay‑later, reinforces the commitment to an “accessible, independent and impartial service that supports consumers and businesses alike.”
They continue to collaborate with the Financial Conduct Authority and the government on a programme of changes aimed at streamlining processes and enhancing consumer outcomes.
Data release and future outlook
The service published its latest half‑year individual company data, covering July 1 2025 to March 31 2026. The dataset includes firms that received and resolved at least 45 complaints, revealing a total of 146,600 complaints over the nine‑month span.
While the increase in case volume may strain resources, the faster closure rates suggest that procedural improvements are taking effect. Ongoing legal uncertainties around MFC cases remain a hurdle, but the Fos indicated progress where broker discretion was absent.
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