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PPI pushes Lloyds to top of complaint league

Lloyds Banking Group was the most complained about business group during the second half of last year while Barclays Bank was the most complained about brand.

The FSA’s latest set of complaint data, published last week, shows Lloyds received a total of 489,099 complaints across the group between July 1 and December 31.

The figure includes complaints about Lloyds brands, including Bank of Scotland, Lloyds TSB, Scottish Widows and Cheltenham & Gloucester.

Overall, Barclays received 289,287 complaints, of which 281,484 related to Barclays Bank.

The remainder concerned Barclays Stockbrokers, Barclays’ structured products manager Woolwich Plan Managers and Barclays’ subsidiary Clydesdale Financial Services.

Lloyds TSB Bank upheld 84 per cent of the complaints it received over the period while Barclays upheld 59 per cent.

Royal Bank of Scotland received 329,165 complaints and upheld 71 per cent.

Its subsidiary Coutts & Co, fined £8.8m last week for anti-money-laundering failures, received 942 complaints and upheld 69 per cent.

Overall, the total number of complaints received by financial companies increased by 21 per cent during the second half of last year to 2,256,172 from 1,850,574 in the first half.

The rise was largely driven by a surge in payment protection insurance misselling complaints, which rose from 528,525 to 977,510.

Complaints relating to personal investment firms, which includes IFAs, advisers and arranging-only intermediaries, were up by 13 per cent, from 24,541 to 27,792.

Highclere Financial Services partner Alan Lakey says: “The numbers reflect PPI misselling, the target-driven culture at banks and the fact that advisers treat people as clients, whereas banks treat them as customers.”

Top 10 most complained about groups

  1. Lloyds Banking Group- 489,099 complaints
  2. Royal Bank of Scotland – 329,165 complaints
  3. Barclays – 289,287 complaints
  4. Santander – 208,994 complaints
  5. HSBC – 141,880 complaints
  6. MBNA Europe Bank – 120,986 complaints
  7. Capital One (Europe) – 62,044 complaints
  8. Nationwide – 31,805 complaints
  9. British Gas Services – 28,915 complaints
  10. Tesco Personal Finance – 26,745 complaints

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