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Latest banking, credit and PPI complaints figures released

FOS receives nearly 150,000 new complaints


The Financial Ombudsman Service is free for consumers to use

The Financial Ombudsman Service (FOS) has received a total of 149,925 new complaints – an increase of 54% on the 97,237 cases received in the second half 2010.

Of the latest set of complaints data relating to individual financial businesses – including banks, insurance companies and investment firms – 66% related to Payment Protection Insurance (PPI).

Lloyds Banking Group received 31,000 complaints about PPI across its business brands – 31% of the total number of PPI complaints (98,632) and the highest amount of any business group. Santander received the highest number of banking and credit complaints with 4,035 new cases.

Number of complaints upheld

The FOS upheld an average of 47% of complaints in favour of consumers, compared with 53% in the second half of 2010. The decrease is partly reflected by the impact of the legal challenge brought on behalf of some high-street banks against FOS and the FSA earlier in the year. 

Across the 157 individual businesses included in the complaints data, the uphold rates varied between 2% and 98% in favour of consumers.

Claiming back PPI can be a quick and easy process, and the FOS act as an intermediary between you and your financial provider to mediate in the event of any dispute. If you think you may have been mis-sold PPI you can claim yourself our online tool to start your complaint today.

PPI complaints not dealt with fairly

Which? executive director, Richard Lloyd, commented: ‘These numbers show that some banks are still not dealing with PPI complaints fairly. If the next round of complaints data doesn’t show a dramatic improvement then the FSA must take tough enforcement action against banks whose complaints handling isn’t up to scratch.

‘To ensure that consumers get the redress they deserve the FSA must make sure that all major banking groups are required to review the PPI complaints they previously rejected unfairly. Even if you take PPI out of the equation, these figures point to the blasé attitude banks seem to have towards their customers.

‘In a properly functioning market banks wouldn’t be able to get away with treating customers like this. This is exactly why the Government must take urgent action to improve competition and switching, starting on Monday when the Independent Commission on Banking publishes its final report.’

Worst companies for PPI complaints

Providers with the highest uphold rates for PPI complaints:

  • CitiFinancial Europe – 90%
  • MBNA – 89%
  • Firstplus (part of Barclays) – 86%
  • Lloyds TSB – 84%
  • Black Horse Ltd (part of Lloyds Banking Group) – 82%
  • Tesco Personal Finance – 64%
  • The Co-operative Bank – 63%
  • RBS – 55%
  • NatWest – 54%
  • Barclays – 52%
  • Santander – 52%
  • Bank of Scotland – 47%
  • Northern Rock Asset Management – 33%
  • HSBC – 18%
  • Nationwide Building Society – 6%
  • Yorkshire Building Society – 4%

More on this…

What is PPI? – Find out more about our campaign on Payment Protection Insurance

Income protection insurance – Many consumers would be better off with this alternative to PPI

Our PPI successes – We’re campaigning for PPI reform, and we’ve had some great successes so far

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