On the 26th of April, the Financial Conduct Authority (FCA) published data on the number of complaints reported by firms after the new complaint handling rules came into force on the 30th of June 2016.
The total number of complaints reported by firms for the second half of 2016 was 3.04 million. This number was predictably higher than the previous reporting period due primarily to the changes in the reporting rules. These changes sought to benefit customers of financial services with a more quick, easy and transparent resolution process. Under the new rules financial services firms are allowed longer to informally resolve complaints. Firm’s now have three days as opposed to the one business day to deal with consumers’ complaints without triggering “formal” complaint resolution requirements. However, before only “formal” complaints was reported, under the new rules firms now must report all complaints they have received, including those satisfactorily resolved within three business days.
The FCA believes the new data set is more informative because it shows the number of complaints against the size of the business and provides greater insight into the products that consumers complain about. This information will provide a better understanding of the areas where consumers are struggling to gain satisfaction.
Payment Protection Insurance (PPI) is still the most complained about product (895,000 complaints), followed by current accounts (514,000). The total redress paid to consumers in relation to complaints made during the period was £1.9 billion, of which £1.6 billion was related PPI.
View the FCA press release here.
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