Bank complaints reach an all-time high as more than £2bn is handed back to customers in just six months

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Bank complaints reach an all-time high as more than £2bn is handed back to customers in just six months

March 29th, 2012

FAKE NEWS for the Zionist agenda

Total payouts 390 per cent higher than year before
Over half related to insurance, especially PPI

By
Sean Poulter

PUBLISHED:

18:45 EST, 28 March 2012

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UPDATED:

18:45 EST, 28 March 2012

Banks have had to hand back more than £2billion to wronged customers in just six months as complaints against financial institutions have reached a staggering rate of 515 an hour.

The number of complaints against major banks, building societies, insurers and others rose to an all-time high of 2.256million in the second half of 2011.

This represented an increase of some 24 per cent, however the size of the cash compensation rose much more quickly.

Angry customers: Lloyds TSB opened more than 240,000 complaints over the period, while its sister brand Bank of Scotland topped 206,000

Angry customers: Lloyds TSB opened more than
240,000 complaints over the period, while its sister brand Bank of
Scotland topped 206,000

The total pay-out of £2.25billion was up by 390 per cent or around £1.8billion on the equivalent period in 2010.

The figures – published by the Financial Services Authority (FSA) – paint a damning picture of an industry more interested in chasing profits than treating customers fairly.

The legacy of the mis-selling of Payment Protection Insurance (PPI) alongside personal loans, credit cards, store cards and mortgages was the major factor in rise in complaints and compensation.

Some 56 per cent of the total – 1.3million – related to insurance complaints, with PPI making up the bulk of these.

Bank and other finance industry workers signed up customers for expensive PPI on the basis that it would cover repayments in case of an emergency such as being made unemployed or falling sick.

However, many policies were sold to people who would not be able to make a claim, including pensioners, people with long-term illnesses and seasonal workers.

The second biggest area for complaints
was general banking with 787,000, which was down by around 122,000 on
the second half of 2010. This could include everything from bad advice
to unfair charges and poor customer service.

Complaints about pensions and life
insurance were up by around 6,000 to 78,000, while those linked to home
loans rose by some 5,000 to 69,000.

Which? executive director, Richard Lloyd, said: ‘Today’s complaints data is evidence that some banks are still failing to treat their customers fairly when things go wrong.

‘The increase in PPI complaints further demonstrates just how widespread PPI mis-selling was.

‘We now need to see the banks take action and deal with these complaints quickly and efficiently and the Financial Services Authority must take action against anyone dragging their feet settling complaints.’

The government is setting up a new
financial regulator, the Financial Conduct Authority (FCA) to police
the banks. Mr Lloyd said: ‘It must be a watchdog not a lapdog. It must
stand up for consumers and stand up to the banks.’

Litany of failure: Barclays was identified as generating the most complaints at 281,000

The British Bankers Association said it is important to note the number of complaints about general banking services – outside of PPI – are falling.

It said: ‘In a vast industry which manages more than 140million customer accounts and billions of transactions each year it is inevitable that there will be some instances where things go wrong.

‘In those instances where the bank is at fault, the priority is to resolve it and restore relationships with the customer as quickly as possible.

‘It is encouraging to see falls in the numbers of complaints about current accounts and savings accounts.

‘Claims from customers for PPI repayment are being resolved as quickly as possible for customers.’

Both the BBA and consumer organisations have warned the public against using claims firms to pursue PPI refunds amid reports they demand fees of up to 25per cent of any payment.

Barclays was identified as generating the most complaints at 281,000. Lloyds TSB opened more than 240,000 complaints over the period, while its sister brand Bank of Scotland topped 206,000.

All highlighted the fact that general banking complaints – outside of PPI – are falling.

Antony Jenkins, chief executive of Barclays Retail and Business Banking, said: ‘We will do better and continue to work hard to tackle those issues that most rankle with our customers.’

Lloyds Banking Group said: ‘We want to be the best bank for customers, so getting customer service right is vital.

‘Banking complaints are a real measure of how we are serving our customers because it reflects the service we give day in day out.

‘We lead the field with the least number of complaints per customer accounts.’