There were 2.1 million complaints about PPI (Payment Protection Insurance) in the second half of 2012 according to the Financial Conduct Authority (FCA), an increase of 5% since the first half of 2012.
Missold PPI represented 63% of all complaints about financial services providers such as banks and insurance companies between July and December last year.
Financial complaints increase by 1%
The FCA figures show that there 3,422,384 about financial companies, an increase of 1% on the first half of 2012. Barclays was the most complained about company with 414,302 complaints followed by Lloyds TSB with 349,386, Bank of Scotland 338,912, MBNA 270,486 and Santander 237,923.
After PPI the most common complaints were about current accounts with 304,196 complaints, general insurance – such as travel or car with 296,679, credit cards 283,705 and savings 100,797. However, the total number of complaints about banking products, such as current accounts, savings accounts and credit cards, actually decreased by 12% to 728,284.
Firms with more than 500 complaints must publish details
The FCA requires firms with more than 500 complaints opened in a reporting period to publish this data on their websites. The FCA collates that information and publishes it each spring and autumn, alongside aggregated figures covering the whole industry.
Recent Which? research into banking problems showed that around 26% of UK bank customers have had problems with their bank account in the last 12 months, and a fifth of current account complaints are not dealt with satisfactorily by banks.
Martin Wheatley, FCA chief executive, said:
‘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.
‘When I meet with the bosses of the financial institutions they frequently tell me that they don’t want to be at the top of the table, which means they strive to improve both their sales and complaints handling processes. Not only does our data help consumers compare and contrast their current bank or lender, but it also boosts competition among firms too.’
Which? executive director Richard Lloyd said:
‘Our own research confirms that there are far too many occasions when banks are giving huge numbers of their customers cause for complaint, and when people do complain they often find they get let down a second time.
‘Naming and shaming banks is a useful wake up call that encourages them to improve, but the regulator must also take action to ensure that they sort out their complaints handling, learn from the mistakes of the past and put customers first, not sales.’
- Which? PPI tool – how reclaim PPI for free
- Making a bank complaint – your consumer rights when making a financial complaint
- Switching bank accounts – how to move to a different bank