30th March 2015
Barclays and Lloyds Bank were the two most complained about financial services firms during the second half of last year according to the City watchdog.
The latest complaints data published by the Financial Conduct Authority (FCA) shows businesses received 2,183,540 new complaints, including those relating to Payment Protection Insurance (PPI) between July and December 2014.
For its part Barclays Bank notched up 276,626 grievances while Lloyds was hit with a total of 242,782. Overall however complaints decreased by 7% compared to the previous six months and by 12% from the same period last year.
But excluding PPI, complaints increased by 1% to 1,124,622, between the first and second halves of 2014 and by 2% when compared with the same period in 2013. This increase was mainly caused by an 8% rise in the number of complaints relating to banking and credit cards over the six months to the end of December. All other product categories showed decreases in the period.
The FCA’s director of strategy and competition, Christopher Woolard, said: “Today’s statistics offer a mixed picture. When you take PPI out of the equation, complaints are still on the up. So, while the overall decreases we have seen should be welcomed there is still more for financial services firms to do. The FCA’s challenge to those firms is to put the necessary measures in place to ensure we see a consistent fall across all sectors.”
PPI accounted for less than half, at 48%, of complaints for the first time in the last three years but remained the most complained about product with 1,058,918 opened complaints in the second half of 2014. The number of PPI complaints opened decreased by 14% to 1,058,918 in the second half of 2014 compared to the first six months of the year.
The total redress paid increased by 4% to £2.44bn in the second half of 2014, from £2.34bn in the first half of the year. Some 88% of this amount, at £2.15bn, related to general insurance and pure protection products, which include PPI. The redress paid in relation to banking and credit card products increased by 64% to £145m between July and December. This constituted 6% of the total redress paid in the last six months of the year against 4% in the previous period.
The top five most complained about firms for the second half of 2014:
The top five most complained about products and services in the first half of 2014 were: