The number of financial complaints received by the Financial Ombudsman Service jumped by a fifth in the second half of 2023.

The organisation said that banking and credit complaints were the main drivers of the rise – with current accounts and credit cards making up more than 40 per cent of its cases.

The service, which aims to resolve disputes between consumers and financial institutions, received more than 95,000 complains over the six-month period compared to nearly 80,000 across the second-half of 2022.

The ombudsman said that current account complaints continue to be dominated by disputes over fraud and scams, while credit card complaints were driven by an increase in perceived unaffordable and irresponsible lending by financial firms.

“In light of the continuing economic challenges people face, it’s always concerning to see complaint levels continue to rise," said Abby Thomas, chief executive and chief ombudsman at the Financial Ombudsman Service. "People's relationships with their banks and insurers are incredibly important, with many relying on these businesses for their homes, their cars and their livelihoods."

The service also saw an increase in general insurance cases – with car or motorcycle insurance complaints rising the sharpest. It said that this was in part triggered by continued delays in firms being able to put things right when a claim is made, as well as insurer valuation of vehicles.

Last month, the ombudsman said that it expects higher demand for its complaints service over the next 12 months.

It now anticipates a caseload of 210,000 complaints this year, higher than the 181,000 new cases it predicted for 2024/25 in December last year.

Higher demand for its dispute resolution service will be driven by everyday financial concerns, such as unaffordable lending; credit card complaints; fraud; and scams, as well as motor finance commission cases which are not affected by the Financial Conduct Authority’s review of historical practices coming to the Ombudsman.

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