Bank account holders get to see complaints data

02 September 2010 09:53:30

Banks have published their complaints handling data.

The first deadline for banking groups to publish their complaints data under new Financial Services Authority (FSA) rules has now passed. Companies had until August 31st to submit their first figures and the consolidated data are due to be published later this month. The new rules are designed to improve openness, but campaigners have questioned whether they go far enough.

New complaints handling rules

Earlier this year, the FSA announced that banking groups would now be required to publish information on how they handle complaints. The move was designed to help consumers, providing them with better information with which to compare bank accounts. In addition, it is hoped that by forcing banks to disclose information on complaints handling, standards across the industry will be driven up.

Under the new rules, firms that receive 500 or more complaints in a six-month period are required to publish data twice a year. This must include information on the number of complaints they opened and closed during that time; the percentage of cases that were closed within eight weeks; and the proportion of complaints that were upheld.

Speaking about the new system in January, FSA director of conduct policy Sheila Nicoll said that it would "help improve how firms treat their customers and provide incentives for firms to deal more effectively with complaints when they are received".

Banks under the spotlight

In line with the new FSA rules, the UK's major banks and building societies have provided details of the volume of complaints and the speed with which they are handled. For instance, Santander revealed that its number of complaints was 7% lower in the six-month period to June 2010 than in the same period in 2009, and that just 2% of complaints remained outstanding after eight weeks. Meanwhile, Lloyds Banking Group revealed that it closed more than three times as many complaints as it received during the first half of the year, thanks to its ability to clear its backlog of cases following the end of a test case on unauthorised overdraft charges.

'Still no clear picture'

Campaigners have welcomed the new rules as a step in the right direction, but are concerned that bank account customers still do not get enough information for individual products. Oliver Morgans, financial specialist at Consumer Focus, explained: "Banks publishing complaints data is a welcome move towards real openness, but these new rules are too limited to allow customers to see the full picture. We would like to see all complaints data clearly broken down by individual brand and product, alongside details of how long it takes for complaints to be dealt with." Mr Morgans added that, by providing this level of information, consumers who compare bank accounts would be better placed to weigh up the customer service offered by individual banks before choosing a new account. 

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