CCR Magazine

CCRi banner ad
You are here  :Home arrow News arrow Overall complaints fall by 2.1% by banking and credit card complaints increase
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Overall complaints fall by 2.1% by banking and credit card complaints increase PDF Print E-mail
Wednesday, 30 September 2015

The latest complaints data published by the Financial Conduct Authority (FCA) show financial services firms received 2,138,209 new complaints between January and June 2015.

Overall complaints decreased by 2.1% compared to the previous six months, driven by the fall in PPI related complaints. The ‘decumulation, life and pensions’ product group saw a rise of 19.7% to 73,055 complaints, whilst ‘general insurance and pure protection’, which contains PPI related complaints, saw a drop of 13.6% to 1,204,783.

When Payment Protection Insurance (PPI) is excluded, complaints continued to increase, this time by 11.6% to 1,255,166 between the second half of 2014 and the first half of 2015.

This increase was mainly caused by a 21.8% rise in the number of complaints relating to the group of products containing banking and credit cards over the six months to the end of June and specifically by the advising, selling and arranging of these products which more than doubled from 133,922 in 2014 H2 (second half of the year) to 276,071 complaints in 2015 H1 (first half of the year).

PPI complaints fell again, this time by 16.6% to 883,043 compared to the second half of 2014, continuing the trend since the second half of 2012.

The FCA’s director of strategy and competition, Christopher Woolard, said:

"While the ongoing fall in PPI complaints is welcome, this is the second half-year running that we have seen complaints about banking products rise. It is clear that firms need to look at the causes for this rise and where necessary take action to address the causes of the trend.

“Ensuring good consumer outcomes should be at the heart of firms’ activities and we want to see complaints fall in the future as firms seek to ensure that consumers get the right products and services.”

While PPI accounted for less than half (41.3%) of complaints for the second time in three years, and fell below 1 million complaints per half year period for the first time since 2012, it remained the most complained about product.

The total redress paid fell by 18.9% to £1.98bn in 2015 H1 from £2.44bn in 2014 H2, with 83.2% of this amount (£1.65bn) related to ‘general insurance and pure protection’ products, which include PPI products. The redress paid in relation to ‘banking and credit card’ products increased by 46.7% to £212.4m between 2014 H2 and 2015 H1.

The top five most complained about products and services in 2015 H1 were:

1.  Payment protection insurance – 883,043 complaints (down 16.6% compared to the previous 6 months)

2.  Current accounts –506,326 complaints (up 31.2% compared to the previous 6 months)

3.  Other general insurance – 304,919 complaints (down 4.3% compared to the previous 6 months)

4.  Credit cards –121,615 complaints (up 11.1% compared to the previous 6 months)

5.  Savings, including cash ISAs, and other banking -  78,981 complaints (down 6.4% compared to the previous 6 months)

Although we do not currently publish the number of complaints by number of customers or number of accounts - to put their figures into context in relation to the size of their business - we recommend that firms do so on their own websites. Our downloadable table <http://www.fca.org.uk/static/documents/firm-level-complaints-data-2015-h1.xlsx>  provides a link to each firm’s website where you can find this additional information.

We will be providing more contextualisation information in future publications and will be requiring firms to publish this on their own websites (rather than doing so on a recommended basis) from August next year.

The top five most complained about firms, in terms of the number of complaints received in 2015 H1 were:

1.  Barclays Bank Plc – 283,221 (an increase of 2.4% since 2014 H2)

2.  Lloyds Bank Plc – 232,971 (a decrease of 4.0% since 2014 H2)

3.  Bank of Scotland Plc – 190,121 (a decrease of 18.0% since 2014 H2)

4.  National Westminster Bank Plc – 144,741 (an increase of 14.4% since 2014 H2)

5.  HSBC Bank Plc – 140,244 (a decrease of 7.8% since 2014 H2)

By product group, the firms with the largest number of complaints opened in 2015 H1 were:

Banking and credit cards

1.  Barclays Bank Plc - 140,574

2.  National Westminster Bank Plc - 95,994

3.  Lloyds Bank Plc - 85,504

4.  Santander UK Plc - 80,566

5.  HSBC Bank Plc - 72,356

Home finance (mortgages and equity release products)

1.  Bank of Scotland Plc - 8,811

2.  Santander UK Plc - 8,517

3.  NRAM Plc - 6,015

4.  HSBC Bank Plc - 5,998

5.  Barclays Bank Plc - 5,774

General insurance and pure protection (including payment protection insurance)

1.  Lloyds Bank Plc - 145,673

2.  Barclays Bank Plc - 133,371

3.  Bank of Scotland Plc - 125,647

4.  MBNA Limited - 83,129

5.  HSBC Bank Plc - 57,347

Decumulation, Life and Pensions

1.  The Prudential Assurance Company Limited - 8,827

2.  Friends Life Limited  - 7,013

3.  The Royal London Mutual Insurance Society Limited - 5,688

4.  Aviva Life Services UK Limited - 4,342

5.  Scottish Widows Plc - 4,110

Investments

1.  Santander UK Plc - 4,375

2.  HSBC Bank Plc - 2,932

3.  Barclays Bank Plc - 2,759

4.  Halifax Share Dealing Limited - 1,724

5.  Equiniti Financial Services Limited - 1,626

The FCA publishes complaints data received from firms every six months, alongside aggregated figures covering the whole industry. The FCA requires firms which receive 500 or more complaints in a six-month period to publish the information on their websites.

(Source - FCA Press Release)  

 
CCRI
3 October - Guoman Tower Hotel, Central London 

CCRInteractive, in association with Marston Holdings , is the largest and leading one-day conference from the publishers of CCRMagazine – a truly national and international event for the credit industry.

This landmark event allows delegates to: Learn best practice of how to increase profitable sales in today’s economy. Understand the key compliance issues and how they will impact upon you. Discuss the legislative and regulatory framework and how it will effect you. Consider the potential effects of Brexit on your business. Discover the latest innovations in the market to improve your collections. Motivate your staff to achieve ever improved results.

To book to attend in 2017, contact Stephen Kiely  or Alison Lucas. To find out more about being part of this landmark event, please contact Gary Lucas
CCRI 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

The Credit Excellence Awards

Awards 

Tuesday 3 October - Guoman Tower Hotel, Central London


Do not miss your chance to meet and network with the Winners and Finalists at the Credit Excellence Awards, in association with Hoist Finance.


To book your place to attend, please contact Alison Lucas.


subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197