The FCA experiences a significant rise in complaints
The Financial Conduct Authority has announced that 3.32 million complaints were filed against financial firms during the first 6 months of 2017, this sees a rise from 3.04 million at the end of 2016. The total amount repaid to customers at the end of 2016 was £1.97bn, but the rise has seen that increase to £1.99bn.
So, what are the issues?
The most complained about product remains as Payment Protection Insurance. PPI even saw the highest increase in complaints compared to other products. Check out the table below…
“Our analysis suggests this is a real increase since the first half of 2016, when 934,965 were received,” the FCA stated in its report. “Because few PPI complaints are resolved by the end of the next business day, the volume of PPI complaints is unlikely to be impacted by the changes in the new return.”
Not only PPI
In addition to PPI, you can see by the table above that current accounts, motor and transport and packaged bank accounts all saw a rise in complaints. The FCA has reported over the years of the banks mis-selling packaged bank accounts to customers. A packaged bank account is any account that includes benefits such as; travel insurance, mobile insurance and car breakdown cover. These benefits will come with a monthly fee ranging anywhere from £7.50 to £25 a month. With enticing fancy names like Silver, Gold, Platinum, Royalties, Signature, etc, these accounts were sold to consumers who, in some cases, didn’t want or need them. Some customers were even upgraded without the bank telling them first. Not the best practice by our High Street banks.
Over 40% of complaints made during the first 6 months of 2017 were associated with “advising, selling and arranging”. Maybe that account you pay a monthly fee for wasn’t really necessary after all?
Here to help
If you have been reading this post and wondering if you have been a victim of the banks mis-selling, why not give us a call and we will see if we can help. Our freephone number is: 0800 007 3777. Or, you can drop your details below and we will give you a call.