According to FCA Barclays was the most complained back during the first phase of 2014. For the first half of 2014 the bank was receiving about 280,000 complaints which translate to 1.08 complaints every minute. Among these complaints towards Barclays bank majority of them were on PPI. Also people were complaining on other general banking products.
On 2014 Barclays confirmed to have paid £38 million penalty on protections of its clients assets. For the past five years the bank has been fined for five times having paid a total of £134 million. FCA spokeswoman said that they have fined Barclays more than other firms in Britain.
The head of clients and customer experience at Barclays, Matt Hammerstein had something to say when he was asked about it. He said during the first half of 2014 they had some significant charges. He said that they are not going to stop striving to improve their services and end the complaints. He said that they are working towards providing the best services for their customers and hence remove the need of complaining. They are striving toward long term satisfaction for their customers. FCA says that the rate of complains have gone down by 10% since the second half of 2013.
The other banks also recorded complaint rise at the same time. Martin Dodd of Lloyds banking said that they have to manage the issue of PPI complaints and compensate customers with mis-sold PPI policy. He says that this is an ongoing project and they will ensure that will work hard to have fair outcomes for their customers.
Last year city watchdog (FCA) introduced tough guidelines so as to have customers get their compensation. Halifas and bank of Scotland are saying that introduction of new rules have made it difficult for borrowers to take out mortgages. For a person to get a home loan they have to provide enough information why they need the loan. This may make the loan application process difficult but protect them from mis-sold PPI.
Since 2007 the complaints about home finance products such as equity and mortgages have increased by 8%. It reached its prime during the first half of 2014. Financial Ombudsman Services says that they have more increased complaints cases on mortgages at the same period.
According to FCA PPI remains to be the most complained financial product during the first half. The number of complaints had reduced by 11% from what was recorded at the last half of 2013. From 2013 current accounts recorded an increase by 3%. Also people are complaining a lot on travel insurance.
PPI scandal started about two decades ago and seems like it will take time before it ends. Every week Financial Ombudsman Service is receiving thousands of complaints indicting that this matter is far from over. The other thing is that some firms are not treating complaints fairly. FCA is committed to ensure that they rebuild the lost trust and confidence in financial industry.