Financial services firms received 2,358,732 new complaints between January and June 2014, according the latest figures published by the Financial Conduct Authority (FCA).
Overall complaints decreased by 5% from the 2,493,729 complaints received in the previous six months.
The top five most complained about firms, in terms of the number of complaints received in the first half of 2014, were:
· Barclays Bank Plc – 278,426 (a decrease of 10% since the second half of 2013)
· Bank of Scotland Plc – 265,640 (an increase of 46% since the second half of 2013)
· Lloyds Bank Plc – 264,115 (an increase of 3% since the second half of 2013)
· National Westminster Bank Plc – 140,342 (a decrease of 20% since the second half of 2013)
· Santander UK Plc – 135,611 (a decrease of 13% since the second half of 2013)
The FCA’s director of policy, risk and research, Christopher Woolard, said: “It’s important that firms now get on top of the issues that are driving complaints. Although it’s encouraging to see the total number of complaints fall, there is clearly further work to be done to ensure that consumer interests come first.”
The top five most complained about products and services in the first half of 2014 were:
1. Payment protection insurance – 1,236,899 complaints (down 11%, compared to the previous 6 months)
2. Current accounts –319,505 complaints (up 3%, compared to the previous 6 months)
3. Other general insurance – 318,502complaints (down 1%, compared to the previous 6 months)
4. Credit cards –127,708 complaints (down 10%, compared to the previous 6 months)
5. Savings, including cash ISAs, and other banking – 89,767 complaints (up 4%, compared to the previous 6 months)
By product group, the firms with the largest number of complaints opened in the first half of 2014 were:
Banking
· Santander UK Plc – 91,158
· Barclays Bank Plc – 88,792
· HSBC Bank Plc – 65,865
· National Westminster Bank Plc – 62,175
· Lloyds Bank Plc – 42,245
Home finance (mortgages and equity release products)
· Bank of Scotland Plc – 16,204
· Santander UK Plc – 11,141
· NRAM Plc – 7,863
· HSBC Bank Plc – 5,880
· Barclays Bank Plc – 5,874
General insurance and pure protection (including payment protection insurance)
· Lloyds Bank Plc – 219,306
· Bank of Scotland Plc – 205,526
· Barclays Bank Plc – 180,112
· MBNA Limited – 107,481
· National Westminster Bank Plc – 72,800
Decumulation, Life and Pensions
· The Prudential Assurance Company Limited – 7,084
· Friends Life Limited – 6,299
· Aviva Life Services UK Limited – 5,840
· Scottish Widows Plc – 5,674
· Phoenix Life Limited – 3,863
Investments
· Barclays Bank Plc – 2,844
· Financial Administration Services Limited – 1,912
· HSBC Bank Plc – 1,912
· Bank of Scotland Plc – 1,647
· Hargreaves Lansdown Asset Management Limited – 1,572
PPI remains the most complained about product, with 1,236,899 complaints. This accounted for 52% of all complaints and 78% of complaints about general insurance and pure protection products.
The total amount of redress paid fell by 12% from £2.65bn in the second half of 2013 to £2.34bn in the first half of 2014. This was largely due to a 17% fall in the number of complaints closed about general insurance and pure protection products (including PPI), which made up 89% of all redress payments in the first half of 2014.
Complaints against banks and building societies accounted for 66% of all complaints in the first half of 2014, followed by 13% against general insurance intermediaries and 8% against other insurers.