Latest complaints figures from the Financial Ombudsman Service (FOS) show that 86% of complaints in the first half of 2013 were about payment protection insurance (PPI).
PPI complaints drive up the total
The release of the latest complaints figures from the FOS today has once again underlined the ongoing impact of the payment protection insurance (PPI) mis-selling scandal.
The FOS, which settles disputes between consumers and financial firms, said new complaints rose 15% to 327,035 between January and June 2013 on the prior six months.
That was driven by a 26% hike in complaints about PPI, where people were charged for loan insurance which they did not need or could not claim on.
These latest figures indicate that some 86% of all new complaints made to the UK’s financial ombudsman in the first half of the year were about PPI mis-selling.
Action point: If you think you are owed money, our guide shows how to reclaim mis-sold PPI.
Most complaints about Lloyds Banking Group
Lloyds Banking Group was the subject of most complaints, at 129,293. Barclays was the second-most complained about group, with 44,223 cases lodged with the ombudsman.
It was followed by Royal Bank of Scotland, responsible for 22,940 complaints to the FOS, and HSBC, which saw 18,444 complaints lodged with the regulator.
FOS highlights long waits and delays
FOS chief executive Natalie Ceeney said: ‘Disappointingly we are still seeing cases where businesses are not following our long-standing approach to PPI, resulting in long waits and unnecessary delays for consumers.
‘But, more positively, we are seeing encouraging signs from some major businesses that are starting to recognise the value of getting things right for their customers – with an increased focus on sorting out problems and concerns as quickly as possible.’
Richard Lloyd, Which? executive director, said in response to the figures: ‘The shockingly high uphold rates on PPI claims exposes just how shoddy the complaints handling is at some of the major high street banks.
‘Despite their claims, banks are failing to clean up their act. The Financial Conduct Authority must ensure all banks are handling complaints to a much higher standard, so that it’s easier for people with legitimate claims to get back what they’re rightly owed. There must be tough action against any bank found dragging its feet.’