As the number of complaints about big banks soars by 69%, we reveal the worst offenders – and what to do if you have an issue with yours.
The Financial Ombudsman Service (FOS) has released its half-yearly complaints, which reveal how the major banks fared.
From January to July, the financial watchdog received 133,019 complaints from dissatisfied consumers.
During the same period last year, the figure stood at 93,114.
While overall complaints grew by 40%, grievances with large banks surged by 69%.
Of the complaints received by the FOS during this period, three in four related to credit and banking.
In fact, this was the only sector to experience an annual increase in the number of complaints.
Issues with credit cards, unaffordable lending, scams and car finance were the major culprits.
The most-complained-about banks
Vanquis Bank was the most-complained-about bank, accumulating 16,067 new cases in the first half of the year.
When it comes to the big names, Barclays and Revolut garnered the most complaints from customers.
As This is Money points out, Barclays’ enormous customer base means it often features highly in the FOS data.
At present, Revolut has 10 million customers in the UK.
According to a recent Freedom of Information request, the number of incidents naming Revolut reported to Action Fraud grew by 36% in 2023.
Interestingly, the most-complained-about credit provider NewDay actually received far fewer complaints during this period – dropping to 5,717.
So, how did the big names fare?
|
Bank name |
Number of complaints |
|
Vanquis |
16,067 |
|
Barclays |
4,289 |
|
Revolut |
3,193 |
|
HSBC/first direct |
3,193 |
|
Lloyds |
2,919 |
|
Monzo |
2,839 |
|
NatWest |
2,817 |
|
Santander |
2,803 |
Source: This is Money
The most complained-about products
Now we’ve covered the big banks, what were the most-complained-about products in the first half of the year?
As mentioned earlier, most sectors experienced a drop in complaints during this period.
For example, there were 22,489 general insurance and pure protection grievances, compared with 24,496 in 2023.
In good news, mortgage and home finance complaints were at 3,685, a significant fall from 5,002 in 2023.
There were 2,305 new complaints about investments, compared with 2,593 in 2023.
There were 140 new complaints about funeral planning, compared with 144 last year.
Don’t just take it
Although the Ombudsman upheld 35% of complaints during this period, this does represent a slight fall from the previous year when it ruled in the customer’s favour in 37% of cases.
If you’ve been mucked about by a financial firm, don’t just accept it and move on with your life. It’s important that you complain and get them to understand your issue.
If they don’t deal with it to your satisfaction, you can then take it to the FOS. Bear in mind, the company will have eight weeks after it receives your complaint to resolve the matter or to issue you with a ‘deadlock’ letter.
In extreme cases, the FCA has the power to award as much as £430,000 in compensation when it rules in your favour.
Have your say
Are there any banks or financial products that particularly get your goat? We’d love to hear your thoughts in the comments below.