View more on these topics

Martin Wheatley: Banks’ complaints handling is ‘outrageous’ and ‘unacceptable’

Wheatley attacks banks in front of MPs this morning

FCA chief executive Martin Wheatley has launched a blistering attack on banks’ “outrageous” and “unacceptable” complaints handling as he revealed two more banks have been referred to enforcement over the way they deal with complaints.

Data published by the Financial Ombudsman Service last week revealed the high level of upheld complaints at several banks in the first half of the year, including Lloyds TSB with 86 per cent of complaints upheld against it and Bank of Scotland with 80 per cent. 

Conservative MP and Treasury select committee member David Ruffley pointed out the FOS has been upholding more than 90 per cent of payment protection insurance claims.

Speaking at the Treasury select committee today, Wheatley said the Fos uphold rates are a problem that needs addressing.

Wheatley said: “It is absolutely not acceptable that such a number of rejected complaints by the banks are subsequently found against the banks. It is outrageous those sort of figures are still the case.

“We have been working very hard to look at bank complaint handling. We have taken enforcement action and will take more enforcement action and we will continue to pressure how banks handle complaints through our ongoing supervision and theme work. I share your concern and those figures are not good for an industry.

“We have got two large investigations underway and we have completed two where we have quite strong fines.”

In January the Co-operative Bank was fined £113,000 over failing to treat customers fairly over PPI payouts while in February Lloyds Banking Group was fined £4.3m over delays in paying PPI claims.

Last week the FCA launched a thematic review into complaint handling at major firms including banks and building societies after claiming it ”isn’t working”. It will publish its recommedations from the review in Q2 2014.

Editor’s view: No more excuses for banks on complaint failures


News and expert analysis straight to your inbox

Sign up


There are 5 comments at the moment, we would love to hear your opinion too.

  1. And this folks is from the head of an organisation which has just about put every small IFA out of business with their over-regulation. All the while the banks were getting away with murder. To little too late m’thinks.

  2. And no congratulation for DA and Network advisers for their incredibly low upheld complaint numbers

  3. If you look at the latest FOS figures, more banks/building societies have uphold rates of below 50% than have them above.

    In other words, whilst there are some exceptions, most seem to be getting it right more than they get it wrong.

    A rather inconvenient statistic for Mr Wheatley.

  4. Not only banks. We have just invoiced Aviva for maladministration of a GPPP. It was a token invoice for just the recent foul ups. Aviva’s policy is that IFAs lie, they therefore divide the invoice by two and will only pay for an administrator’s time!
    We keep timesheets, we will go back two years and invoice them for the full amount including our adviser’s time. It will be a 4 figure invoice and the Small Claims Court beckons!

  5. @Sam
    Just FYI we took on another well known GPP provider a couple of years ago over mal administration and we got £5k. We just needed to go high enough that someone could admit their error and be prepared to write a cheque instead of facing loads of bad press, internal hassle and court costs.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm