Moans to banks rose by nearly two thirds in the first half of the year, according to figures from the Financial Services Authority
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Britain’s banks are facing a rising tide of complaints due to the PPI mis-selling scandal.
Moans to banks rose by nearly two thirds in the first half of the year, according to figures from the Financial Services Authority.
Payment protection insurance complaints were up 129% and were the key driver in a 59% increase in gripes overall to nearly 3.6 million.
Banks have faced pressure to compensate consumers for mis-sold PPI after losing a challenge against the FSA.
The City watchdog had taken action over concerns about how they were dealing with complaints.
Banks are thought to have set aside £8.8billion to compensate customers who were mis-sold the product, which was designed to maintain loan repayments if people fell ill or lost their jobs.
Some banks sold the insurance alongside loans without telling customers they were buying it, or sold it to self-employed people who were not entitled to claim.
Complaints to Lloyds Banking Group, Britain’s biggest retail bank, rose 146% to 860,000, leaving it top of a list of the country’s five major lenders, although complaints totalled 114,390 excluding insurance and protection products.
Lloyds, which is part-owned by the taxpayer after its bailout during the financial crisis, acknowledged the problems caused by PPI but said its complaints had fallen 18% year-on-year if PPI-related gripes were stripped out.
A spokeswoman said: “PPI is a big legacy issue and we’re working hard to deal with it swiftly.”
Banks paid out nearly £3bn in compensation for insurance products including PPI in the period, part of a total compensation bill of almost £3.2bn – up from £2.25bn in the second half of 2011.
Consumer group Which? warned that banks needed to earmark more cash for PPI compensation as complaints rocket, saying the money they set aside may run out in months.
Which? boss Peter Vicary-Smith said the complaints about PPI made it “the biggest financial scandal of all time”. He said: “We’re campaigning for big change in the banking culture to put customers first, not bankers.”
The FSA said complaints about general insurance and pure protection products increased 99% to 2,541,430. The number of PPI complaints rose 129% to 2,232,294, making up 62% of total complaints.
Banking complaints increased 5% to 828,040. Gripes about current accounts dropped 13%, but complaints about savings and other banking products were up by 2%.
Moans to banks rose by nearly two thirds in the first half of the year, according to figures from the Financial Services Authority.
Payment protection insurance complaints were up 129% and were the key driver in a 59% increase in gripes overall to nearly 3.6 million.
Banks have faced pressure to compensate consumers for mis-sold PPI after losing a challenge against the FSA.
The City watchdog had taken action over concerns about how they were dealing with complaints.
Banks are thought to have set aside £8.8billion to compensate customers who were mis-sold the product, which was designed to maintain loan repayments if people fell ill or lost their jobs.
Some banks sold the insurance alongside loans without telling customers they were buying it, or sold it to self-employed people who were not entitled to claim.
Complaints to Lloyds Banking Group, Britain’s biggest retail bank, rose 146% to 860,000, leaving it top of a list of the country’s five major lenders, although complaints totalled 114,390 excluding insurance and protection products.
Lloyds, which is part-owned by the taxpayer after its bailout during the financial crisis, acknowledged the problems caused by PPI but said its complaints had fallen 18% year-on-year if PPI-related gripes were stripped out.
A spokeswoman said: “PPI is a big legacy issue and we’re working hard to deal with it swiftly.”
Banks paid out nearly £3bn in compensation for insurance products including PPI in the period, part of a total compensation bill of almost £3.2bn – up from £2.25bn in the second half of 2011.
Consumer group Which? warned that banks needed to earmark more cash for PPI compensation as complaints rocket, saying the money they set aside may run out in months.
Which? boss Peter Vicary-Smith said the complaints about PPI made it “the biggest financial scandal of all time”. He said: “We’re campaigning for big change in the banking culture to put customers first, not bankers.”
The FSA said complaints about general insurance and pure protection products increased 99% to 2,541,430. The number of PPI complaints rose 129% to 2,232,294, making up 62% of total complaints.
Banking complaints increased 5% to 828,040. Gripes about current accounts dropped 13%, but complaints about savings and other banking products were up by 2%.
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