THE best and worst lenders have been revealed according to the number of complaints that they receive.
Financial Conduct Authority (FCA) data shows which banks that offer lending through credit cards, personal loans and mortgages received the most complaints last year.
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The figures are published half-yearly and the latest data shows all complaints made between July and December 2022.
Barclays received the highest number of complaints from borrowers in the period when looking at the data for traditional high-street lenders.
In total, the bank received 6,738 complaints in the six-month period but this was down by 9% from the previous period.
Samantha White, managing director of Barclays UK customer care channels, said: “It’s encouraging to see complaints reduce again both year-on-year and half-on-half, however, there’s always more that can be done and we won’t stop in our mission to create a perfect customer experience.”
HSBC closely followed with 5,814 complaints between July and December last year – down 9% on the previous period.
Lloyds Banking Group subsidiaries – Lloyds Bank and Bank of Scotland received thousands of customer complaints too.
In total, 4,988 customers complained to Lloyds Bank and 2,862 to Bank of Scotland in the period but the number of complaints for the former was down 8% but for the latter up 1% on the previous period.
The number of people complaining to NatWest in the second half of last year was down by 17% on the previous period to 4,293.
The number of complaints submitted to the Royal Bank of Scotland, owned by NatWest, also decreased by 22% to 1,016 in the six months to December 2022.
Complaints to Santander were up by 11% to 2,511 in the period.
TSB received 1,089 complaints and Clydesdale Bank which received the least compared to other high-street banks only received 649 in the period.
As far as building societies go, Nationwide received the highest number of complaints with 1,599 submitted between July and December 2022.
While Coventry Building Society received just four formal complaints in the same period.
Web-based challenged banks that lack bricks and mortar branches received less than 1,000 complaints in the second half of last year.
Monzo received just 316 – but this is up by 24% on the previous six-month period.
Starling Bank received just 189 complaints – down from 267 in the previous period.
How did other lenders fair?
Over 10 other financial institutions which don’t have banking licenses received countless more complaints compared to the popular high-street brand we all know above.
NewDay Ltd which provides a whole host of lending services received the most complaints.
The company is partnered with big brands like John Lewis and Partners and Argos and runs their credit card schemes.
Over 31,000 customers issued complaints to NewDay between July and December 2022.
Shop Direct Finance Company Limited which offers Littlewoods and Very shoppers loans and buy now, pay later services received 19,020 complaints in the same period.
J D Williams & Company which allows shoppers to pay for their purchases in instalments through JDW Pay received 16,326 complaints in the period.
How do I complain to my bank?
Banks and lenders that are registered with the FCA are required to have a written complaints process that tells customers how to make a complaint.
You should be able to find the information on their website but if you don’t, ask them to send it to you.
It’s worth making your complaint as soon as possible, as it’ll be easier to remember all the relevant details to strengthen your case.
Then simply follow each stage of the process, and submit as much evidence as you can.
Once you’ve sent in your complaint, the firm needs to give you a response within eight weeks.
If you don’t get a response within eight weeks or you’re not happy with the one you do get, you can take your complaint to the free Financial Ombudsman Service (FOS).
How do I take my complaint to the Financial Ombudsman?
If you decide to take your complaint to the FOS, keep in mind you must typically do so within six months of your provider’s final response.
To get in touch, you need to fill in a form, which you can find on the FOS website.
If you’d prefer to talk it through with someone, the FOS can help you do this if you call 0800 023 4567.
When you get in touch, you need to have the following details to hand:
- Some basic information, including your name and address
- What the problem is, and how you want things put right
- Details such as the policy number or account number that your complaint relates to
The FOS will then look at the evidence provided by both sides, and it may contact you for more information.
Once it’s made a decision, it’ll write to you and if it agrees with your complaint, it’ll say what your bank or credit card firm must do to put things right.
If you decide to take your complaint to the Financial Ombudsman (FOS), keep in mind you must typically do so within six months of your provider’s final response.
To get in touch, you need to fill in a form, which you can find on the FOS website or simply complete the online complaint form.
If you’d prefer to talk it through with someone, the FOS can help you do this if you call 0800 023 4567.
When you get in touch, you need to have the following details to hand:
- Some basic information, including your name and address
- What the problem is, and how you want things put right
- Details such as the policy number or account number that your complaint relates to
The FOS will then look at the evidence provided by both sides, and it may contact you for more information.
