Financial services complaints drop, but sharp rise in PPI

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By Andrew Harbison, CA Today

4 April 2016

Complaints around financial services dropped by 1.4% during the last six months of 2015, according to figures from the Financial Conduct Authority (FCA).

Between July and December 2015, financial services firms in the UK received a total of 2.11 million complaints.

Figures released by the FCA show that a 10% drop in current account complaints, and a 15% decrease in complaints relating to savings accounts helped drive down the industry total.

Barclays remains the most complained about firm, but saw a drop of 1% compared with the last FCA report. The bank also received the highest number of complaints related to credit cards out of the firms surveyed.

Lloyds and Bank of Scotland were the second and third most complained about banks respectively, but both also saw a fall in complaints.

Bank Number of complaints Compared to previous 6 months
1. Barclays Bank Plc 279,561 -1%
2. Lloyds Bank Plc 230,041 -1%
3. Bank of Scotland Plc 182,702 -4%
4. National Westminster Bank Plc 135,262 -7%
5. HSBC Bank Plc 120,986 -14%

Source: FCA

The data shows payment protection insurance (PPI) is the most complained about financial product. Complaints about PPI rose by 6% to 932,298 cases, making up 44% of all complaints opened.

The data also shows a 9% rise in credit card complaints, the largest increase of any product.

Product Number of complaints Compared to previous 6 months
1. Payment protection insurance932,298+6%
2. Current accounts 454,276 -10%
3. Other general insurance296,505 -3%
4. Credit cards 132,988+9%
5. Savings, including cash ISAs, and other banking67,546 -15%

Source: FCA

The findings are a result of a comparison to the first six months of 2015.

Christopher Woolard, Director of Strategy and Competition at the FCA said: “It is positive to see that the longer term reduction in the volume of complaints has continued into the latest period. Firms seem to have taken on board our previous feedback on levels of complaints and we are slowly seeing firms address these issues.

“However, firms still need to do all they can to reduce complaints and ensure that they are working in the best interests of consumers.”

The rate at which complaints are dropping is slowing compared the data gathered between January and June. During the first half of 2015 complaints dropped by 2.1% compared to the last half of 2014.

Source: FCA

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  • Business

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