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Bank complaints fall 1.4 per cent –FCA

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fca_logoFinancial services firms received 2.11 million new complaints between July and December 2015, according to new complaints data published today by the Financial Conduct Authority.

Overall, there was a decrease of 1.4 per cent in the number of complaints compared to the previous six months which was mainly driven by a 10 per cent drop in complaints about current accounts and a 15 per cent drop in complaints about savings accounts, the City watchdog said.

When payment protection insurance (PPI) is excluded, the number of complaints between July and December 2015 is reduced to 1.17 million. Payment Protection Insurance (PPI) remains the most complained about product, with complaints about PPI rising by 6 per cent in the current period.

Although current accounts saw one of the largest reductions in complaints numbers, they are still the second most complained about financial product in the period covered.

Christopher Woolard, director of strategy and competition at the FCA, said: “It is positive to see that the longer term reduction in the volume of complaints has continued into the latest period. Firms seem to have taken on board our previous feedback on levels of complaints and we are slowly seeing firms address these issues.

“However, firms still need to do all they can to reduce complaints and ensure that they are working in the best interests of consumers.”

The total redress paid to consumers fell to £1.97 billion between July and December 2015 which is slightly lower than the £1.98 billion paid between January and June 2015.

  • The fall in redress payments was mainly due to a 2 per cent fall in payments related to general insurance and pure protection products, which includes PPI. This accounted for almost 82 per cent of complaints redress payments.

  • Other product categories saw a reduction in redress payments between July and December 2015, except for banking and credit cards which increased by almost 27 per cent and home finance which increased by 17 per cent.

    • The top five most complained about products and services between July and December 2015 were:

    1. Payment protection insurance – 932,298 complaints (up 6% compared to the previous six months)

    2. Current accounts – 454,276 complaints (down 10% compared to the previous six months)

    3. Other general insurance – 296,505 complaints (down 3% compared to the previous six months)

    4. Credit cards –132,988 complaints (up 9% compared to the previous six months)

    5. Savings, including cash ISAs, and other banking – 67,546 complaints (down 15% compared to the previous six months)

      6. The top five most complained about firms all saw a reduction in levels of complaints received between July and December 2015:

      1. Barclays Bank Plc – 279,561 (a decrease of 1% since 2015 H1)

      2. Lloyds Bank Plc – 230,041 (a decrease of 1% since 2015 H1)

      3. Bank of Scotland Plc – 182,702 (a decrease of 4% since 2015 H1)

      4. National Westminster Bank Plc – 135,262 (a decrease of 7% since 2015 H1)

      5. HSBC Bank Plc – 120,986 (a decrease of 14% since 2015 H1)

        6. By product group, the firms with the largest number of complaints opened in 2015 H2 were:

        Banking and credit cards

        1. Barclays Bank Plc 133,335

        2. National Westminster Bank Plc 85,859

        3. Lloyds Bank PLC 76,480

        4. Santander UK Plc 64,622

        5. HSBC Bank Plc 62,721

          6. Home finance (mortgages and equity release products)

          1. Bank of Scotland plc 11,606

          2. Santander UK Plc 7,331

          3. HSBC Bank Plc 6,296

          4. NRAM plc 6,107

          5. Barclays Bank Plc 5,740

            6. General insurance and pure protection (including payment protection insurance)

            1. Lloyds Bank PLC 152,149

            2. Barclays Bank Plc 136,433

            3. Bank of Scotland plc 120,444

            4. MBNA Limited 81,377

            5. Home Retail Group Insurance Services Limited 54,296

              6. Decumulation, Life and Pensions

              1. The Prudential Assurance Company Limited 8,063

              2. Friends Life Limited 5,496

              3. The Royal London Mutual Insurance Society Limited 4,530

              4. Aviva Life Services UK Limited 4,023

              5. Phoenix Life Limited 3,215

                6. Investments

                1. HSBC Bank Plc 3,007

                2. Barclays Bank Plc 2,880

                3. Equiniti Financial Services Limited 1,567

                4. Santander UK Plc 1,375

                5. The Prudential Assurance Company Limited 1,212

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