Lloyds Bank most complained about provider, says Ombudsman

6 September 2016
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Customers of Lloyds Bank take the most complaints to the Financial Ombudsman Service, with the independent complaints arbitrator resolving 22,241 gripes about the firm in the first half of the year.

Lloyds Bank is one of the largest financial providers, so this isn’t the fairest figure to use given it has more customers than other firms.

However, of the top 10 most complained about companies – Lloyds had the highest uphold rate between January and June 2016 at 70%, meaning it wrongly rejected the most customer complaints.

See the table below for the full details of the most complained about financial firms. 

 

Ombudsman complaints on the rise

Complaints to the Financial Ombudsman Service as a whole were also up over the period, with the Ombudsman taking on a total of 169,132 new cases in the first half of 2016 – an increase of 1% on the second half of 2015.

The average uphold rate – where the Ombudsman found in the consumer’s favour was 48% – ranging from 3% to 92%.

Of the complaints in the first six months of 2016, payment protection insurance (PPI) made up the most at 54% of new complaints – with 91,381 new cases – down from 92,667 in the previous period.

 

Chief ombudsman Caroline Wayman says: “Although it’s a few years now since PPI complaints peaked, we have been receiving over 3,000 a week for six years running – despite wider expectations that numbers will fall. And we’re continuing to deal with the issues and uncertainties around PPI, which remain a significant challenge for everyone involved.”

The FCA has proposed setting a deadline of June 2019 for consumers to make PPI complaints by. 

For complaints about financial products other than PPI, the number has increased by 8% to 77,751. The Ombudsman says one of the reasons for this is because payday lending complaints have more than doubled compared to the last six months of 2015. It believes this is due to a greater awareness.

The number of complaints and uphold rate by sector is as follows.

Complaints by sector ranked by uphold rate

SectorUphold rateNumber of complaints
PPI57%91,381
Mortgages and home finance45%5,279
Investments37%2,783
Insurance32%17,103
Life and pensions30%3,959
Banking and credit29%48,627

Based on resolved Ombudsman complaints between 1 January and 30 June 2016. Covers 221 businesses.

Ten most complained about firms ranked by uphold rate

ProviderUphold rate %Number of complaints
Lloyds Bank70%22,241
Capital One63%5,073
MBNA54%5,852
Royal Bank of Scotland53%4,480
HSBC49%11,082
Barclays47%18,603
NatWest47%8,027
Financial Insurance Company46%6,612
Bank of Scotland34%22,090
Santander30%5,605
Based on resolved Ombudsman complaints between 1 January and 30 June 2016.

Jen Tippin, Lloyds Banking Group’s group customer service director, says: “At Lloyds Banking Group we are committed to delivering excellent service to our customers. If things do go wrong, we want to put them right as quickly as we can, and learn from our mistakes.

"Whilst we are pleased to see that our overall complaints have fallen, we continue to work very hard to address the root cause of any customer dissatisfaction.” 

How to complain

If you’re unhappy with your financial provider, first complain to the company involved. If you don’t get a response with eight weeks or you’re unhappy with the response you do get, take your complaint to the free Financial Ombudsman Services to look into.

Comments

In reply to by anonymous_stub (not verified)

I have had endless amount of troubble with Lloyds bank thay keep putting blocks on my account for no reason and that keep making me go in even wen i told them I'm disabled and struggle getting there and don't have photo id I am Homeless and now can't access my benefits this has happened lots of times and I keep getting sent back prison coz I can't get there coz thay keep doing this to me

Lloyd's Disputes teams (debit & credit cards) are waste of time

Lloyd's disputes teams are pretenders, irresponsible and liars.
They never support the customer. In June I conned from an estate agency in Spain, lost € 2000.00. I phoned Lloyds bank. They could stop transaction. They didn't and promised disputes team will sort out. In three months revealed haven't done anything. When I call even didn't know what is about. Despite I have sent them details information emails, photos. They promised me will send a letter. I haven't received any letter. They were avoiding to answer my telephone calls. It was a nightmare. Last year I closed Credit card, I am going to do the same Debit card. Unbelievable dishonest service.

Lloyd’s is dishonest bank I agree

I agree that Lloyd’s is a dishonest bank. They closed my account just because I made 4 claims in 7 month period. They never told me in their terms and conditions that I could not do that. I received a horrible treatment from the bank. It has horrible customer service.

Lloyd’s is dishonest bank I agree

I agree that Lloyd’s is a dishonest bank. They closed my account just because I made 4 claims in 7 month period. They never told me in their terms and conditions that I could not do that. I received a horrible treatment from the bank. It has horrible customer service.

Fraud department

I have been in dispute with the fraud department, and they have diligently failed to understand evidence that I provided which very clear. They are incompetent and negligent . Furthermore they have taken money from my account illegally. I am going to follow this up robustly. The officer dealing with m6 case in the fraud department It’s beyond a joke.

In reply to by Gary (not verified)

Did you manage to sort this,…

Did you manage to sort this, I'm having major issues with me atm regarding fraud and they don't even have the audacity to say sorry, called me a liar u name it

Lloyd’s bank is a failure!

Lloyd’s closed my account just because I
Made 4 claims in a 7 month period. They told me that they are unhappy that I am making claims and that they are making a business decision to close my account. In their terms and conditions it never stated that they could punish you and close your account for exercising your consumer right of disputing a transaction. My account was always in credit. I did not have an overdraft facility on the account. Lloyd’s has treated me very poorly.

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