PPI grievances drive 21% surge in complaints against Barclays

BARCLAYS was again named the most complained about bank in the UK yesterday by the Financial Services Authority.

The lender attracted 281,000 complaints in the second half of 2011, up from 251,000 in the first half, as total complaints against the financial services sector rose by 21 per cent to more than two million.

Although Barclays was the worst single performer, the complaints made to Lloyds Banking Group as a whole, including its HBOS and Halifax brands, outnumbered those to Barclays.

The bulk of the overall rise was down to complaints about payment protection insurance (PPI), which was sold by banks alongside loans and credit cards. Many of the policies were sold to people who could never make a valid claim due to conditions in the small print.

Barclays pointed out that it has cut complaints about its core banking service by almost a third. Antony Jenkins, chief executive of its retail and business banking arm, said: “Complaints are still higher than our customers should expect, but we are on the right track.”

Lloyds TSB opened more than 240,000 complaints over the period, a rise on just under 182,000 seen during the previous six months. Bank of Scotland received 206,000 complaints, up from the 130,000 in the first half of 2011.

A statement from Lloyds Banking Group said stripping out general insurance and PPI complaints from the figures, it had cut complaints by nearly a quarter. Of the major banks, Royal Bank of Scotland received the fewest new complaints – at 103,385.

Last month, The Scotsman revealed that more than three-quarters of people successfully claiming PPI redress through the Financial Services Compensation Scheme used claims management companies.

The FSCS is urging consumers to submit claims themselves to maximise the compensation they receive.

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