Lloyds Banking Group received almost 300,000 customer complaints in the first six months of 2010, its own data has revealed.
Banks are required to publish details of how consumers’ complaints are dealt with by the Financial Services Authority (FSA), and Lloyds has admitted it was hit by 288,717 separate grievances between January and June. 103,686 people contacted Lloyds to report problems relating to bank accounts, yet only 12% of these complaints were upheld.
Problems with PPI reclaiming
Meanwhile, 41,874 people complained about general insurance products, including payment protection insurance. 54% were successful in challenging the bank.
Which? personal finance campaigner Dominic Lindley says: ‘Lloyds rejects the majority of PPI complaints but most of the people who then go to the Financial Ombudsman have their complaint upheld. The message to consumers is clear – if your bank rejects your PPI complaint, don’t give up at the first hurdle, go to the Ombudsman.’
For more information on PPI mis-selling and for online help with reclaiming your premiums, take a look at our guide.
Bank charges complaints
348,700 banking complaints were closed by Lloyds in the first half of this year, helping to push down the overall percentage of grievances that were upheld. According to the bank, many of the complaints it has rejected so far this year were to do with overdraft charges.
The FSA’s waiver, which allowed banks to put off dealing with these complaints, lapsed in November 2009 after the Supreme Court ruled the fees were fair.It seems that, consequently, Lloyds dismissed many of the outstanding overdraft charges complaints against it.
If you’ve had a problem with your bank, take a look at our guide to making a complaint.
Bank customer service
Lloyds Banking Group’s poor complaints data backs up its performance in the recent Which? Money People’s Choice poll. In it, we revealed our members’ favourite financial brands, as well as those that had let their customers down.
Lloyds TSB and Cheltenham & Gloucester, both brands belonging to the group, achieved low overall customer satisfaction scores of 53% and 50% in the survey. Meanwhile Halifax and Bank of Scotland, also part of the Lloyds stable, featured at the very bottom of the Which? table with extremely poor scores of 46% and 43%.
The average customer satisfaction score in our survey, which took into account standards of service relating to the operation of mortgages, savings accounts, current accounts and credit cards, was 59%. However some banks, such as First Direct, the One Account, Smile and the Co-operative Bank, achieved scores above 75%.
To find out how your bank or credit card provider scored in this year’s satisfaction survey, check out the Owners’ views pages of our savings accounts, current accounts and credit cards reviews.
Which? Money when you need it
You can follow @WhichMoney on Twitter to keep up-to-date with our Best Rates and Recommended Provider product and service reviews.
Sign up for the latest money news, best rates and recommended providers in your newsletter every Friday.
Or for money-saving tips, and news of how what’s going on in the world of finance affects you, join Melanie Dowding and James Daley for the Which? Money weekly money podcast
For daily consumer news, subscribe to the Which? news RSS feed here. And to find out how we work for you on money issues, visit our personal finance campaigns pages.