Complaining to Your Bank

The BBC has reported that Barclays Bank received more complaints than any other bank in the UK in the first half of 2011. But what were the complaints about, and in case you were wondering, what is the best way to make a complaint and what help can you get?

Let’s face it, there are some instances where we’re not prepared to put up with bad service (or mis-selling) any longer. Apparently, we become more likely to complain as we get older. TV station Dave’s study reported that over-50s were more likely to complain and spend time worrying than their younger counterparts. Over-50s write an average of 2.9 letters of complaint per year, rising to 3.5 for the over sixties, whereas it’s just 1.8 by those in their twenties.

So if you feel it’s time to write and complain to your bank, get on and do so!

In the first half of the year Barclays received more than a quarter of a million complaints, and more than half of those were upheld, according to figures from the Financial Services Authority (FSA). However, rather unsurprisingly, Lloyds Banking Group had the largest number of complaints when all its brands were added together.

The number of complaints made each day on average to financial institutions was almost 10,000, with the first half of the year seeing a total of 1.76 million complaints. Santander closed 98% of cases within eight weeks, with 90% at Barclays, but only 74% at Royal Bank of Scotland. In cases that are left unresolved, the Financial Ombudsman Service, which is independent, usually helps to sort out the resolution, one way or the other.

Most complaints were about payment protection insurance (PPI), much of the volume prompted by the banks losing their legal challenger about PPI rules in April this year. The idea of PPI is to cover borrowers’ loan repayments in certain circumstances – such as loss of a job – but the abundance of mis-selling caused new rules to be drawn up on how cases should be handled, leading to a large increase in compensation payouts by the banks.

How to complain

In the first instance you should make your complaint to the business you’re complaining about, giving them a chance to resolve the problem, and the target for this is eight weeks. However, the Financial Ombudsman can help contact the business for you. The Financial Ombudsman website also gives tips for how to make you complaint.

Using the Financial Ombudsman

Beyond the assistance mentioned, the Financial Ombudsman can look into the problem for you – but only after the eight weeks has elapsed. The Financial Ombudsman will need you to complete a complaint form so it knows the details of the case. Again, there is guidance on the Financial Ombudsman website about this.

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