Banks: Barclays Ranks Top Among Complaints

Barclays received more complaints than any other UK banking brand

Barclays received more complaints than any other UK banking brand

Figures for the first half of the year show more complaints were bought up against Barclays than any other banking group in the UK.

FSA figures

The Financial Services Authority has reported that Barclays received 251,563 complaints in the first six months of 2011.

Of the cases that have been closed so far, 53% have been ruled in the customers’ favour, suggesting that the figures reflect error on the part of the Bank and not particular customers.

Other banking brands that ranked high on the list of complaints include Lloyds TSB, which received 181,907 grievances filed against it. Santander came in third at 168,888 complaints, and NatWest also sat high on the list at 147,109.

Though these banks rank highest, they are not alone. Figures show that almost 10,000 complaints to financial institutions were filed every day, totaling 1.76 million complaints in the first half of the year alone.

Payment Protection Insurance

The FSA also found that while Santander was among the banks most complained about, it was most likely of any major UK bank to handle complaints within eight weeks. 98% of all Santanders complaint cases were resolved within that time frame, compared with 74% at Royal Bank of Scotland, 77% at Lloyds, and 90% at HSBC.

The issues dominating complaint files were payment protection insurance (PPI), which customers purchased with the intent that banks would cover loan repayments should they face unemployment, sickness, or death.

Banks recently lost a legal challenge concerning the mis-selling of PPI, leading to tougher regulations on how to deal with PPI cases and billions of pounds in compensation from the banks.

Complaints that are unresolved by banks are sent to the Independent Financial Ombudsman Service, which reported that almost two-thirds of new complaints in the first half of the year were about PPI.

It also said that the largest number of complaints handled by the Ombudsman Service were related to Lloyds Banking Group. While Barclays topped the complaints list, Lloyds saw more complaints total among all of their banking brands.

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