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Lloyds complaints more than Santander, RBS and Barclays combined

The Financial Ombudsman Service received more complaints about Lloyds Banking Group in the first half of 2010 than the total number of complaints for Santander, Royal Bank of Scotland and Barclays put together.

Data published today by the Ombudsman shows that between January 1 and June 30, 2010 the FOS dealt with 22,420 complaints relating to Lloyds Banking Group.

Of those, 12,750 cases related to Lloyds TSB Bank, with 8,474 cases concerning general insurance policies sold by the bank.

A further 2,136 cases related to Black Horse, Lloyds’ personal finance division, which offers personal loans and car finance.

The bank that received the next highest number of new complaints was Barclays, with 9,215 cases submitted to the FOS during the first half of the year.

Barclays’ cases were mainly driven by the 4,797 banking and credit complaints the FOS received. The Ombudsman upheld 61 per cent of all complaints, 51 per cent of mortgage complaints and 60 per cent of investment complaints.

Royal Bank of Scotland complaints totalled 6,469, Santander’s came to 5,885, and HSBC received 4,031.

The FOS figures only cover financial businesses where the Ombudsman received at least 30 new cases and resolved the same amount between January and June.

Sesame had 108 new cases referred to the FOS, the majority of which were to do with life and pensions advice. The Ombudsman found 51 per cent of all complaints in favour of the consumer, 70 per cent of investment complaints in favour of the consumer and upheld 49 per cent of all life and pensions
and decumulation complaints.

Meanwhile, Openwork had 49 complaints across the GI, investments and life and pensions sectors. FOS upheld just 21 per cent of Openwork’s total complaints.

Complaints against St James’s Place Wealth Management totalled 38, with 19 relating to investment advice. The FOS found 49 per cent of all complaints in favour of consumers and upheld 52 per cent of investment complaints.

Wills & Co stockbrokers received 387 investment complaints and the Ombudsman upheld 99 per cent of them. The firm was declared in default by the Financial Services Compensation Scheme in July, after the FSA stopped Wills & Co from giving investment advice in February. The compensation costs are likely to fall on the intermediary sub-class.

FOS chief executive and chief ombudsman Natalie Ceeney says: “The latest set of complaints data shows that some businesses are really committed to ensuring that complaints are handled well and are used to inform and improve the service they offer their customers.

“However, the complaints data also shows there is still more that some businesses need to do to ensure that complaints are properly investigated and fairly resolved. The ombudsman is keen to continue to play its part and help businesses draw lessons from the complaints that we see, so disputes can be sorted out at the earliest opportunity.”

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. and virtually no IFAs amongst them that I can recognise while the banks have data that would get an IFA closed down!

    So what will the FSA do, concentrate on the IFA sector, its easier!

  2. Q: And what is the FSA doing about any of this?

    A: What it’s been told by the Treasury to do.

    Why? Because whenever there’s any threat of regulatory action against them, the banks threaten to relocate outside the UK with the consequent loss of UK jobs and tax revenues. So the Treasury caves in and tells the FSA to look the other way.

    That’s blackmail, isn’t it, which is a criminal offence?

  3. No surpises. Via the FOS, I just won over £11k from HBOS for a widow who is recovering from breast cancer. She put on fact find ‘no risk’ and was flogged a £50k corporate bond fund investing 25% in junk bonds – that dropped over £10k.
    The banks manufacture poor products but factor in so much profit that even when paying out compensation they still end up the winners. Let buyers beware!

  4. It was Paul Selly of HBOS who said of RDR: “Bancassurers set to benefit”

    Following the decimation of independent advisers RDR will force the mass market into the hands of bancassurers. It seems to me that RDR is being used to manipulate the market in favour this distribution channel and all with the connivance of the same regulator who failed to curb the banks resulting in the recent debt crisis.

  5. Just wait until 2014 they will think that is a drop in the ocean.

  6. The Financial Ombudsman Service received more complaints about Lloyds Banking Group in the first half of 2010 than the total number of complaints for Santander, Royal Bank of Scotland and Barclays put together.

    Yes but Lloyds has massively more customers than Santander. On a % per customer Santander is much higher.

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