Barclays, Lloyds and Santander top FSA complaints list

| September 28, 2011 | 0 Comments

Figures from the Financial Services Authority (FSA) have revealed that the three most complained about British banks are Barclays, Lloyds and Santander.

According to the FSA, Barclays received more than a quarter of a million complaints in the first half of 2011.

Lloyds received 181,907 complaints in the six month period, while Santander had 168,888 complaints lodged against it.

NatWest, Bank of Scotland and HSBC were next on the list with 147,109, 130,469 and 98,150 complaints respectively.

The FSA added that almost 10,000 complaints were filed every day to financial institutions.

However, the FSA highlights that Spanish banking giant Santander was the most likely to deal with cases within eight weeks.

Within that timeframe, it dealt with 98% of cases, compared with 90% at HSBC, 89% at Barclays, 86% at Natwest, 77% at Lloyds and 74% at Royal Bank of Scotland.

However, the banks point out that the majority of the complaints were about the controversial payment protection insurance (PPI).

The FSA introduced a review of the insurance after millions of policies were mis-sold and thousands of complaints were received.

In April, the High Court ruled that the banks had to abide by the new rules of the FSA, which meant they had to review all their past sales to see if customers have a claim for mis-selling.

Under a PPI policy, an agreed sum of money is paid out each month to fully cover, or cover a percentage of the payment due on your mortgage or loan if you are unable to work, as a result of becoming unemployed or sick.

It was established last year that financial providers commonly boosted their profits by incorporating the cost of a one-off PPI premium into a loan.

Meanwhile, in response to the FSA’s figures, Antony Jenkins, chief executive of Barclays retail and business banking, said: “We have made good progress in reducing complaints, with a substantial and sustainable reduction by nearly a third.”

Furthermore, a spokesperson for Lloyds said: “The complaints figures include those made about PPI. If you take those out our banking complaints have gone down compared with the second half of 2010.”

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