Complaints over PPI still at a High

The Financial Conduct Authority (FCA) last week released the latest complaints data, outlining complaints figures from financial services firms during the second half of 2012. Complaints to financial services firms between July and December last year reached 3.4 million, a 1% increase in comparison to the first half of 2012.

On the 1st April this year, the FCA, took over the role of regulating the financial services industry from the Financial Services Authority (FSA). The complaints data released last week, is the first set of figures to be released by the new authority since it took over the role earlier this month. The figures represent complaints made directly to financial services firms.

Barclays bank was flagged as the most complained about bank with more than 400,000 complaints recorded by the bank during the latter half of 2012. Lloyds TSB, Bank of Scotland, MBNA and Santander also ranked in the top 5 most complained about banks.

Payment Protection Insurance (PPI), once again proved to be a sore spot for customers, with 2.1 million PPI complaints recorded between July and December last year, accounting for 63% of all complaints to financial services firms during that time period.

Martin Wheatley, chief executive at the FCA has explained the importance and relevance of complaints data:

“Greater transparency drives greater competition, and the publication of the complaints data lays bare the track record of the UK’s financial institutions when it comes to resolving customer conflict.

“Not only does our data help consumers compare and contrast their current bank or lender, but it also boosts competition among firms too”.

Echoing Martin Wheatley’s comments, while the data points towards continued customer upset caused by banks and the industry as a whole, the FCA’s release of complaints data lays bare the poor performance of select firms which we hope will encourage competition amongst banks, effectively improving industry standards, and importantly the service provided to customers.

Further to this, the FCA also released papers earlier in April, outlining proposals which aim to improve banks’ treatment of consumers, through better regulation and the application of behavioural economics.

Banks will no longer be able to rely on the ‘buyer beware’ defence, as behavioural economics will help the FCA establish how consumers make important financial decisions, as well as banks’ sales practices leaving the onus of the mis-selling of products on the firm who sold the product.

Reflecting on the figures announced last week, as well as the proposed changes to the regulation of the industry; we are hopeful that the new regulatory body will work to bring a firmer watch over the UK financial services industry as a whole. Those banks which scored highly on complaints we also hope will endeavour to improve their service, to not only salvage their reputation but also better serve their customers.