TheUK’s high street banks are under fresh fire for failing to handle customer grievances properly after another sharp rise in complaints to the Financial Ombudsman Service (FOS).
The mediation body received 149,925 complaints about financial businesses in the first half of this year, up 54 per cent from the previous six months. Taxpayer-backed Lloyds Banking Group, theUK’s biggest lender, was responsible for the highest number of complaints, at more than 37,000. Edinburgh-based Royal Bank ofScotland, also part-owned by the state, accounted for 13,391 complaints.
Almost two thirds of complaints to the FOS concerned Payment Protection Insurance (PPI). However, most high street banks put complaints about PPI on hold until May, pending a high court challenge against Financial Services Authority (FSA) rules forcing them to reopen sales dating back to 2005.
Natalie Ceeney, chief executive of the FOS, said: “Complaints in this period about PPI were harder fought, and harder to resolve – particularly if we found in favour of a consumer. This data therefore gives only a partial view on the cases which we were working to resolve over this period.”
But consumer groups claimed the figures offered further evidence that banks are failing to treat PPI complaints fairly. More than half of PPI complaints were upheld in favour of the consumer, including 84 per cent at Lloyds TSB, compared with the 47 per cent upheld across all products.
Consumer Focus, said the PPI uphold rate was unacceptable. “Even the seemingly better performers appear to be unnecessarily stringing out complaints, challenging decisions and denying consumers refunds.”
Sally Bowyer, Managing Director of Brunel Franklin said: “Everyone accepts that banks provide a valuable service and are entitled to make fair and reasonable charges for services. But people shouldn’t be sold PPI without being furnished with the full facts. PPI mis-selling cases serve as timely reminder of how careful we all need to be when taking out new loans and other credit card agreements.”
Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51.