Complaints against banks rise by 60% according to FSA

The Financial Services Authority has recently stated that the number of complaints being made about banks has risen by nearly 60 percent. Most of these complaints are made up of PPI complaints, which make up around two thirds of those complaints being made to financial institutions.

Payment protection insurance was something that was a great deal of scandal in the first half of the year, and the UK regulator has stated that this is why the number of complaints has increased so dramatically.

This increase in figures implies the banks are receiving a total of nearly 20,000 complaints every single day. The mis-selling of payments protection insurance was something that occurred by banks, and it was charging people a great deal of money for something that was of no use to them. Many complaints have been made to banks about the mis-selling of this type of insurance, and the banks faced a significant public backlash from the mis-selling.

It is estimated that nearly £3 billion of compensation has been paid out in total for the mis-selling of these products, with most of this being paid during the first six months of the year. Barclays has been ranked as the bank receiving the greatest number of complaints, and it is estimated that in the first six months of 2012 they received over 440,000 complaints.

The figures do change slightly if you take PPI complaints out of the equation, and this leaves Barclays and Santander at the top of the complaints list. Interestingly, banks haven’t seen a rise in complaints across the board, and the number of complaints being made about current accounts actually fell by around 13 percent. This somewhat pales in comparison to the increased number of complaints from elsewhere however. Complaints will probably decrease once the PPI scandal has subsided.