Hidden fees, FCA breaches, poor customer service and other reasons to complain to your bank

As complaints about banking and credit soar, we reveal eight reasons you should always make a fuss.

With grievances to the Financial Ombudsman Service (FOS) surging by 40%, it’s safe to say many of us aren’t happy with our banks.

According to the regulator’s data, it received 133,019 complaints between 1 January and 30 June 2024 compared to 93,114 the previous year.

During the first six months of 2024, consumers lodged 101,031 banking and credit complaints and raised issues with fraud and scams.     

This got us thinking: what are banks doing to annoy us the most?

In this article, we explore eight instances where you should complain to your bank.

What are the most complained about financial products?

1. Hidden fees

According to research from transaction service Wise, Brits are set to lose £215 billion to questionable bank fees in 2024.

Remember, banks have a legal duty to be transparent about any charges.

Overdraft fees, maintenance charges or unexpected transaction fees might seem small individually.

However, the combined cost can really add up.

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2. Inadequate customer service

If you have a problem with your bank, your first port of call is normally its internal customer service team.

Under FOS rules, providers must respond to your complaint within eight weeks.

To expedite things, it’s always a good idea to add the header of “complaint” to your letter or email.

Also, remember to include as much information as possible such as your account number and any reference numbers.

3. Failure to follow regulator rules

The Financial Conduct Authority (FCA) has strict guidelines on lending, advertising, customer treatment and financial advice.

Banks that fail to follow FCA rules also risk financial penalties and legal action.

For example, mis-selling financial products, such as mortgages or payment protection insurance, can lead to compensation claims and reputational damage.

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4. Unfair account closure

According to the FOS, you have reason to complain if a bank has closed your account through unfair bias.

The FOS states that common complaints about bank closures include factual errors, conflicting information and insufficient notice.

If you raise a grievance, the FOS will look at details such as the Banking Conduct of Business Sourcebook and Payment Services Regulations.

That said, banks can close accounts for reasons such as breaches of terms and conditions, suspicious activity and threatening behaviour.

5. Not preventing fraud

Under new Government guidelines, not preventing fraud is a recognised criminal offence for corporate bodies.

According to the Economic Crime and Corporate Transparency Act 2023, a financial organisation could be held criminally responsible for an offence by an employee, agent or “associated person”.

Likewise, providers will be responsible if they don’t have a “reasonable” fraud prevention policy.

6. Difficulty accessing your money

If your card stops working or your app goes down, you have a genuine grievance.

In extreme cases, a payment can fail due to IT issues.

According to the FOS, common complaints include charges for late or missed payments, as well as knock-on losses.

It is beneficial if you also have copies of bank, credit card or mortgage statements when raising your issue.

7. Discrimination

According to the regulator, discrimination “is mistreating someone" because of the way they look, where they’re from, their accent, a disability, their faith or certain characteristics.

Under the Equalities Act 2010, people are legally protected from discrimination based on the following:

• Age
• Disability
• Gender reassignment
• Marriage and civil partnership
• Pregnancy and maternity
• Race
• Religion or belief
• Sexual orientation

8. Irresponsible lending

According to debt management charity Step Change, irresponsible lending constitutes providing a loan to someone who can’t afford to repay it.

As a result, borrowers may need to:

• Reduce living costs
• Cut back on essential payments

Any responsible lender should assess your finances so you can repay the money in full without falling behind on your other bills.

They should also make sure they are not leaving you struggling financially.

An affordability check is also key.

A lender should look at factors such as:

• Your income
• Your monthly income
• Your spending

Have your say

Have you ever been ripped off by your bank? What practice annoys you the most?

We’d love to hear your thoughts in the comments below.