Complaints against banks have risen by 59% says watchdog
Financial Services Authority says complaints against banks have soared in the first half of this year.
The FSA report covers complaints against banking, home finance, general insurance and protection, life assurance and pensions, and investment sectors. But the biggest complaints have once again been against banks selling payment protection insurance (PPI) which rose by a whooping 129% by end of June in 2012.
Lloyds topped the list of complaints for selling erroneous PPI with 391,272, followed by Bank of Scotland (291,872), Barclays (280,358).
The FSA has said that complaints against mis-selling of PPI are coming from all sources and it is worried that some of the complaints are bogus. However, at the same time £2.9 billion has been paid out in compensation in the first six months of 2012 out of £3.2 billion total redress payments on all banking complaints.
"PPI is now the biggest financial scandal of all time," said Peter Vicary-Smith, chief executive of consumer group Which?. "The banks must set aside more money for PPI claims and make it easier for customers to get back what they are rightly owed, without any hassle."
Santander topped the list for regular high street banking complaints with 157,165 in the period, followed by Barclays at 152,372, NatWest with 82,173) and HSBC 58,527.
The British Bankers’ Association have said that the banks have increased resources to address these complaints especially regarding PPI mis-selling.
"At the same time they are writing to customers they believe may have been mis-sold PPI policies in the past advising them of their right to complain,” a spokesperson said. "Whatever the cause, the banks are committed to resolving complaints fairly, swiftly and effectively and restoring their customer relationships."
Lloyds have argued that they receive the most complaints because they have the largest number of customers but that the bank is committed to "getting customer service right".