Lloyds and Barclays most complained-about banks

| September 27, 2012 | 0 Comments
Lloyds and Barclays most complained-about banks

The Financial Services Authority has revealed the results of its six-monthly review of complaints, showing that LLoyds and Barclays are the two most complained-about banks.

Complaint numbers have rocketed as a result of the Payment Protection Insurance (PPI) mis-selling scandal and have now reached the rate of one PPI complaint every 7 seconds.

Between January and June the number of PPI complaints increased to 2.2 million, an increase of 129 per cent from the previous six months.

PPI policies were sold alongside loans and credit cards to cover repayments if borrowers were made unemployed.

However banks offered large incentives to staff to sell the lucrative product, leading to sales practices that breached guidelines.

Consumer group Which? has warned that the cost of compensation for PPI mis-selling could be substantially more than previously estimated.

The group believes that the £10 billion set aside by banks to settle claims could be used by the end of the year.

Which? chief executive officer Peter Vicary-Smith said: “With well over two million PPI complaints being made in just six months, PPI is now the biggest financial scandal of all time.

“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.”

The most complained-about banks in terms of services were Santander and Barclays.

More than 150,000 complaints were made about the two banks between January and June and half of the complaints were upheld.

On a more positive note, complaints about current accounts fell by 13 per cent and complaints about investment bonds fell by seven per cent.

The PPI scandal has led to calls from the Financial Services Consumer Panel for bankers to be licensed by a professional body which would give “credible deterrence” against unacceptable behaviour.

Mike Dailly, Consumer Panel Working Group Chair said: “Bankers need to have the same high professional standards as doctors and solicitors. They need to be licensed by a mandatory professional body so that there is credible deterrence for unacceptable behaviour and risk taking.”

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