FSA slams poor complaints records
(30th September 2010 – UK) The Financial Services Authority has warned banks to tighten up their complaints handling process as customer grievances sky-rocket.
Following the publication of the watchdog’s first firm-specific data, revealing that more than 7,000 gripes are lodged against high street banks every day, the FSA has said that it will be revising complaints handling rules.
The report shows that in the first six months of 2010, Lloyds Banking Group generated 288,717 complaints, the highest of any bank, followed by Barclays, Santander with around 250,000 complaints each.
The Royal Bank of Scotland drew over 140,000 complaints and HSBC about 80,000.
However, according the BBC, despite Lloyds shocking complaints record the bank reconciles 97 percent of the complaints with the recommended two months.
Barclays manages to deal with 97 percent of complaints within the timeframe, while Santander only handles only 46 percent.
The FSA is now calling for a mandated overhaul of complaints handling rules to drive up standards.
The watchdog's proposals include requiring firms to identify a senior individual responsible for complaints handling, the abolition of the 'two-stage' handling rule, and better root cause analysis to tackle recurrent or systemic problems. It is also stipulating an increase in the amount customers can be awarded from £100,000 (A$162,000) to £150,000.
Sheila Nicoll, director, conduct policy, FSA, said that good complaints handling standards should be the rule not the exception and complaints handling forms a key part of our intensive and intrusive approach to supervise how firms deal with their customers.
The report shows that in the first six months of 2010, Lloyds Banking Group generated 288,717 complaints, the highest of any bank, followed by Barclays, Santander with around 250,000 complaints each.
The Royal Bank of Scotland drew over 140,000 complaints and HSBC about 80,000.
However, according the BBC, despite Lloyds shocking complaints record the bank reconciles 97 percent of the complaints with the recommended two months.
Barclays manages to deal with 97 percent of complaints within the timeframe, while Santander only handles only 46 percent.
The FSA is now calling for a mandated overhaul of complaints handling rules to drive up standards.
The watchdog's proposals include requiring firms to identify a senior individual responsible for complaints handling, the abolition of the 'two-stage' handling rule, and better root cause analysis to tackle recurrent or systemic problems. It is also stipulating an increase in the amount customers can be awarded from £100,000 (A$162,000) to £150,000.
Sheila Nicoll, director, conduct policy, FSA, said that good complaints handling standards should be the rule not the exception and complaints handling forms a key part of our intensive and intrusive approach to supervise how firms deal with their customers.
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