The energy regulator, Ofgem, has warned companies to improve their customer service or face consequences.
Experts at money.co.uk have revealed that over 265,000 complaints have been filed against firms in England and Wales since January 2024. Citizens Advice data shows that more than one-fifth of these complaints were directed at a single industry, with the transport sector leading the list.
Customers’ complaints can have major consequences for companies, possibly leading to costly legal fights, especially when severe accusations, such as scams, are present.
Kyle Eaton, a business insurance expert at money.co.uk, advised companies to improve customer service. He highlighted the need for clear communication with clients, soliciting regular feedback, and having a strong quality control procedure. Eaton also emphasised the importance of creating a complete complaint-handling mechanism to address concerns before they escalate.
Industries with the most complaints
In July 2024 alone, nearly 8,000 complaints were lodged against transportation-related enterprises, representing a 9% increase over the previous month. Many of these complaints were about faulty commodities, such as used autos, or disappointing services, like bicycle repairs.
The housing fittings and appliances sector ranked second, with 6,788 complaints. Issues ranged from subpar window installations to poor carpeting, with customers particularly dissatisfied due to the expensive costs of these purchases.
The personal goods and services business, which includes apparel, footwear, and medical items, came in third place in July 2024, with 3,678 complaints. The increase in complaints (12% over the previous year) may reflect rising customer expectations for quality, particularly in products that directly affect health and comfort.
Another source of concern is the increasing number of scam-related complaints, notably in the professional and financial services industries. In July 2024, over 10% of complaints in this industry were about fraudulent conduct, such as scams carried out via bogus websites, apps, or unsolicited phone calls.
The house fittings and appliances sector also received a substantial amount of scam complaints, with over 9% of cases including fraud. Many of these scams took place on doorsteps, with scammers posing as home renovation service providers to take advantage of vulnerable customers.