League table of Bank Complaints Published by FSA

The state-owned Lloyds Banking Group has come out worst in a FSA report of customer complaints, as the banking regulator looks to force banks to take a more serious approach towards customer service.

The FSA has today, for the first time, published a list of banks facing the highest number of complaints from UK customers, of which 280,000 related to the Lloyds Banking Group in the first half of 2010.

Barclay’s Bank, with 259,266, received the second highest number of complaints whilst Spanish bank Santander was also singled out for criticism.

Santander, which took over Alliance and Leicester and the savings arm of Bradford & Bingley in 2008, received 244,978 but was criticised for only resolving 46% of those complaints within an eight week period. Lloyds resolved 97% of complaints within eight weeks whilst Barclay’s closed 91% of complaints within the same time period.

Lloyds Banking Group, which took over HBOS in 2008, defended its record, claiming that it has more customers than any other bank in the UK and that the number of complaints represented less than 1% of their 30 million customers.

The FSA is proposing new rules to improve banks’ complaints procedures after an April report criticised the way banks dealt with customers’ complaints.

It blamed a lack of interest by senior bank management, bonus schemes that inhibited staff from paying compensation, and poor decision making.

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