Further increases in complaints about financial services

During the last six months of 2010 the Financial Ombudsman received almost 100000 complaints from UK consumers.

Many of the cases relate to the ongoing PPI claims saga, where it has become clear that high street banks and other financial institutions had few controls in place to prevent sales to people that did not need, request or even sometimes qualify for such cover (which almost always could have been purchased for less elsewhere anyhow).

More than a fifth of the complaints were about Lloyds TSB Group. RBS finished second, Barclays third, HSBC fourth and Santander fifth. In sixth and seventh place were credit card providers Capital One and MBNA. In eighth was National Australia Group which operates Clydesdale Bank.

In just over half of the cases the Ombudsman backed the consumer making the case. This rises to 74% of complaints against Lloyds TSB, and 73% of claims against MBNA and Clydesdale.

While the results will be seen as being disappointing overall, it’s clear that there are some financial services providers for whom properly dealing with consumer complaints simply is not important.

A search around our trust deed forum sheds further light on the different levels of services that people receive from different banks and lenders. It also demonstrates differences in the way that they handle clients once they become aware that a trust deed has been signed.