Complaints about taxpayer-backed banks went up by a third in
just six months, according to the Financial Ombudsman Service.
Figures from the independent arbitrator show that Lloyds Banking
Group and Royal Bank of Scotland saw a huge surge in complaints
about unfair charges, credit card rates increases and mis-sold
insurance policies.
RBS is 84% owned by taxpayers after receiving £45.5bn of public
money to bail it out during the credit crunch, while Lloyds is 41%
state owned after receiving £23bn.
The ombudsman received more than 17,000 about LBG banks - Lloyds
TSB and Bank of Scotland, which includes Halifax - during the
second half of last year, an increase of 4,500 on the first
half.
The ombudsman also dealt with 5,476 disputes involving about RBS
and subsidiary NatWest between July and December 2009, a 30%
increase on the previous six months.
Complaints are elevated to the FOS after customers have
exhausted a company's complaints process and are not satisfied with
the outcome.
The ombudsman received more than 17,000
about LBG banks - Lloyds TSB and Bank of Scotland, which includes
Halifax - during the second half of last year
An ombudsman spokesman said: "We continue to have concerns about
the way companies are handling complaints. There are still far too
many that find their way to us that have not been handled properly
at the initial stage.
"Companies need to take their customers' concerns
seriously."
The city watchdog, the Financial Services Authority, recently
announced that from this August banks must publish the percentage
of complaints they resolve including the number they upheld.
The FSA is also to investigate RBS's complaints process after
expressing concerns over the way it is treating its customers'
complaints.
If RBS are guilty of breaching the rules governing the fair
treatment of customers, they may be forced to pay millions of
pounds in fines and compensation.
Claims Financial