Data has been revealed that Barclays has had the most complaints this year compared with any other UK brand of bank. Around 251,563 complaints were received by the bank in the first half of this year, with 53% of completed cases favouring the customers according to information from the Financial Services Authority (FSA).
Lloyds TSB, Santander, and NatWest were also on the list, with 181,907, 168,888, and 147,109 complaints respectively. The FSA information combines information released recently by the separate banks to show how the data interacts.
Each day, financial companies saw nearly 10,000 complaints—reaching a total of 1.76 million in the first six months of 2011. In addition, of the companies receiving the most complaints, Santander was the most likely to resolve the issues or deal with complaints within eight weeks, closing 98% of its cases within that amount of time.
This is in comparison with 90% at HSBC, 89% at Barclays, 86% at NatWest, 77% at Lloyds TSB, and 74% at Royal Bank of Scotland. Many of the complaints involved the mis-selling of payment protection insurance (PPI). Banks lost their court case challenging PPI regulations in April and since then, complaints have been strengthened by phone call reminders from solicitors to households across the UK.
PPI is meant to cover the cost of loan repayments if borrowers become ill, die, or even lose their financial income due to becoming unemployed. Banks have already put aside billions of pounds to cover PPI compensation, and new rules created from the mis-selling cases have come into place regarding the manner in which cases should be handled and regulations on larger compensation.
This information on complaints has been published in relation to brands of banks, meaning the Lloyds Banking Group had higher complaints when all members and brands of the group were calculated together.
Several complaints may end up with the independent Financial Ombudsman Service, especially if the bank does not resolve them on their own. Barclays has no overtaken Lloyds as the bank with the highest amount of complaints, but the highest number that went on to the Financial Ombudsman Service came from Lloyds Banking Group. Finally, nearly two thirds of any new complaints in the first half of the year involved PPI.