Financial services firms received 2.11 million new complaints between July and December 2015, according to new complaints data published today by the Financial Conduct Authority.
Overall, there was a decrease of 1.4% in the number of complaints compared to the previous six months which was mainly driven by a 10% drop in complaints about current accounts and a 15% drop in complaints about savings accounts.
When payment protection insurance (PPI) is excluded, the number of complaints between July and December 2015 is reduced to 1.17 million. Payment Protection Insurance (PPI) remains the most complained about product, with complaints about PPI rising by 6% in the current period. Although current accounts saw one of the largest reductions in complaints numbers, they are still the second most complained about financial product in the period covered.
Christopher Woolard, director of strategy and competition at the FCA, said:
“It is positive to see that the longer term reduction in the volume of complaints has continued into the latest period. Firms seem to have taken on board our previous feedback on levels of complaints and we are slowly seeing firms address these issues.
“However, firms still need to do all they can to reduce complaints and ensure that they are working in the best interests of consumers.”
The total redress paid to consumers fell to £1.97 billion between July and December 2015 which is slightly lower than the £1.98 billion paid between January and June 2015.
The fall in redress payments was mainly due to a 2% fall in payments related to general insurance and pure protection products, which includes PPI. This accounted for almost 82% of complaints redress payments.
The top five most complained about products and services between July and December 2015 were:
- Payment protection insurance – 932,298 complaints (up 6% compared to the previous six months)
- Current accounts – 454,276 complaints (down 10% compared to the previous six months)
- Other general insurance – 296,505 complaints (down 3% compared to the previous six months)
- Credit cards –132,988 complaints (up 9% compared to the previous six months)
- Savings, including cash ISAs, and other banking – 67,546 complaints (down 15% compared to the previous six months)