As the Financial Ombudsman Service (FOS) reported 1,500 complaints per day from consumers in the first half of the year regarding payment protection insurance (PPI) mis-selling, Barclays and Lloyds have come under the radar as they became the most complained about organisations.
The latest FOS data reveals that Barclays had a total of 322 investment complaints, which is a 11% fall as compared to the previous six months data which showed that Barclays received 361 investment complaints. The FOS said it upheld half of investment complaints.
With a total of 23,703 new FOS complaints between January 1 and June 30, the ill-famed bank was complained about all products it offered. Barclays beat other banks to gain top spot in complaints. Bank of Scotland had 170 new investment complaints referred to the FOS, Lloyds TSB received 164 investment complaints, Santander got 116 new investment complaints and HSBC received 92.
The FOS preserved 44% of investment complaints against Bank of Scotland, 10% of of investment complaints against Lloyds TSB, 52% of investment complaints against Santander and 53% against HSBC. The report puts additional burden over Barclays which is already bogged down by several controversies.
The major banks have allocated more than £9 billion to compensate individuals who were mis-sold PPI. The insurance was designed to cover repayments on loans and credit cards if borrowers were made unemployed in specific circumstances.
But the policies included large profit margins and staff were goaded to sell them with the lure of incentives, often breaching sales guidelines. Banks sold many policies based on incomplete or misleading information to individuals who would never be able to claim on it.