In the last six months of 2011, 282,899 new complaints were received by Barclays from its customers. Half of the complaints were about mis-sold payment protection insurance (PPI). According to the figures, the rise of total complaints about financial firms by 21pc was witnessed during the period as compared to the last six months of the previous year (2011). The growing number of complaints about PPI drove the sharp rise in complaints. The 85pc rise was witnessed in the complaints regarding the controversial insurance which was regularly sold by banks alongside loans and credit cards, over this duration. It is the report according to FSA data.
Some other banks also received a huge amount of complaints. The 244,249 new complaints were received by Lloyds TSB over this duration. On the other hand, Bank of Scotland and Halifax, which are the part of Lloyds Banking Group now got 204,876 complaints. Total 449,125 complaints were received by these three brands if we take their figures together.
Largest number of new general insurances has also been attracted by Lloyds Banking Group, which is 324,827. If we talk about the prominent banks, we find that Royal Banks of Scotland got the fewest new complaints, i.e., 103,385. HSBS had just 45,296 PPI-related complaints of total number of 116,891 complaints. Over this period 208,994 new complaints were received by Santander.
Due to these huge volumes of PPI complaints, the banks had to pay out billions in compensation. Many of the policies were sold to people, by whom valid claim could never be made because of the exclusions in the small print, which was never explained clearly. Apply with more information here small bad credit loans
The new rules were introduced by FSA last year on how banks as well as other loaners should deal with such complaints. These rules led to a rush in complaints due to which backlog was created with some banks.
According to new figures, claim management firms are making four out of five complaints, which advertise on television. Up to third of any compensation paid is taken up by these firms. The figures indicate that their success rate is lower than individuals pursuing their own complaints, either via the Financial Ombudsman Service or with the bank direct. The customers favour is being found by the Ombudsman in more than 9 out of 10 cases, with some firms.
According to Antony Jenkins, the chief executive of Barclays retail and business banking, "complaints are still higher than our customers should expect". But, he also said that the bank was on the right track because of bringing these numbers down having seen 31pc reduction in complaints every year.