Newspaper article The Evening Standard (London, England)

Banks under Fire as Finance Complaints Hit 20,000 a Day

Newspaper article The Evening Standard (London, England)

Banks under Fire as Finance Complaints Hit 20,000 a Day

Article excerpt

Byline: Simon Read

FINANCE firms attracted nearly 20,000 complaints a day in the first six months of 2012, it was revealed today, as the backlash against UK banks continues.

The payment protection insurance mis-selling scandal accounted for the bulk of the 3.6 million grievances, according to figures published by the Financial Services Authority.

PPI complaints soared 129% in the period to 2.23 million, while the total number of complaints climbed 59%.

The bill to compensate customers of Britain's banks who were flogged the useless payment cover is expected to eventually top [pounds sterling]10 billion.

After the figures were published by the City watchdog today, Consumer group Which? warned that the compensation bill could climb higher still and called on banks to set aside more funds.

Its analysis suggests that if PPI payouts continue at the same pace as the first half of 2012, Lloyds could run out of provisions by November, Barclays by December, RBS within the next six months and HSBC by August next year.

Peter Vicary-Smith, Which? chief executive, said: "PPI is now the biggest financial scandal of all time. The banks must set aside more money for PPI claims and make it easier for customers to get back what they are rightly owed, without any hassle."

Lloyds Banking Group remains the most-complained-about financial group as grievances climbed 146% to 860,000 between January and June. …

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