The number of complaints made about financial institutions rose during the second half of 2012 due to payment protection insurance (PPI).
The Financial Conduct Authority (FCA) said that a total of 3,422,384 complaints were received between July and December last year – a 1% increase on the first half of the year.
There was a fall in complaints for all financial products except insurance between July and December. Complaints about current accounts fell by 6%, while credit card complaints fell by 14% and issues about savings accounts fell by 20%.
However, the insurance and pure protection group (including PPI), leapt by 5%. PPI complaints rose above the two million mark over the six-month period, to 2,170,537, and accounted for almost two thirds of all complaints (63%).
Irate consumers filed a total of 4.23 million PPI complaints in 2012, almost triple the number from 2011.
Banks Under Fire
The figures showed Barclays to be the most complained-about bank, though this was eclipsed by the constituent banks of Lloyds Banking Group, which summated 762,000 complaints across all product areas.
Both banks have been plagued with negative headlines over the last twelve months following a number of scandals.
Barclays: the single most complained-about bank between July and December 2012.
Barclays recently commissioned a report from Rothschild to highlight the bank’s past mistakes and has repeatedly stated its determination to restore its hammered reputation (read more).
Lloyds, meanwhile, has come under scrutiny for its controversial ‘Salespoints’ system, which prioritises sales of financial products that are more valuable to the bank. Such operations, the Financial Services Authority concluded, were instrumental in promoting mis-selling practices.
Lloyds has set aside more funds for PPI redress than any other bank (read more).
Transparency Incentives
Martin Wheatley, chief executive at the FCA, said that publishing the data created an incentive for banks to improve their practices.
"Greater transparency drives greater competition, and the publication of the complaints data lays bare the track record of the UK's financial institutions when it comes to resolving customer conflicts," he said.
"Not only does our data help consumers compare and contrast their current bank or lender, but it also boosts competition among firms too."
Keith McDonald
Which4U Editor
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