In the UK, banking and credit attracted more complaints than any other sector to the financial ombudsman service (FOS) in the first half of this year. Some 44,200 complaints about banking and credit issues - out of a total of 72,978 complaints to the FOS - were received in the first six months of 2022, which was slightly down on 46,220 complaints in the last half of 2021.
Most complaints related to issues with current accounts, with credit cards the next common source of grievances. Just over a third (37 per cent) of banking and credit complaints were upheld in consumers’ favour in the first half of this year, a drop on the figure of 44 per cent for the last six months of 2021.
People can take complaints to the FOS if they cannot reach an agreement with their financial firm. The latest figures also show an increase in complaints related to pensions, insurance and investments compared with the previous half-year, while complaints about mortgages decreased.
Analysis of the new complaints received by the FOS in the first half of this year shows that 28 per cent of the 17,530 general insurance and protection complaints were upheld, 24 per cent of 747 payment, protection and insurance complaints were upheld and 27 per cent of 3,658 complaints about mortgages and home finance were upheld. The report says that 24 per cent of decumulation, life and pensions complaints were upheld as well as 30 per cent of investment-related complaints.
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Also in the UK, the cost-of-living crisis has been weighing heavily on many people’s minds. More than one in five people in work have considered taking time off due to the stress, according to a new survey by the wealth management company St James’s Place.
Nearly half (49 per cent) of UK adults say they feel more anxious and worried than last year, according to the survey, which addressed 2,000 people across the UK. Nearly a fifth (18 per cent) say they have suffered from stress-related conditions in the past 12 months.
What is more, 42 per cent have found their general mood affected. Day-to-day living costs such as energy bills, food, transport and fuel are among people’s biggest financial concerns for the next 12 months. Some people also expressed doubts about being able to pay their rent or mortgage, while others were worried about being able to live off their current pension.
Charities have warned that people are struggling to deal with higher bills than a year ago. “The cost-of-living crisis is gripping the nation, with most of us feeling the effects of record inflation through rising food, fuel and energy prices,” says Alexandra Loydon, director of engagement and consultancy at St James’s Place. “As a result, household finances are stretched and this is taking its toll on people’s lifestyles and physical wellbeing, as well as their mental health.”
“Recent economic forecasts and a looming recession will have only exacerbated this, and with finances set to be pushed to their limits in winter as energy usage increases, it’s really important people take steps to help with their financial situation, try to take care of their physical and mental health, and seek support and advice where needed.”
Speaking about finances can be a sensitive topic for many, with the result that financial instability can often be an alienating and daunting experience, adds Loydon. “However, people shouldn’t feel alone and should share their concerns. It’s important now more than ever to ensure we’re looking after our own wellbeing — seeking advice from debt advice charities, financial advisers and mental health professionals can make the world of difference and provide vital support through these turbulent times.” — PA