The Financial Conduct Authority (FCA) has amended its consumer complaints data following a mix-up which reported MBNA as having 102,000 consumer credit complaints for the second half of 2016.
As part of the statistical release in April, the FCA originally published a table showing MBNA at the top for the most consumer credit complaints.
The credit card provider flagged an error about this data with the regulator and concluded that the figure should in fact be zero. The FCA then removed MBNA from that specific table completely.
MBNA later confirmed to Credit Strategy that it does not record consumer credit complaints, only those for banking and credit cards, insurance and pure protection.
The amended data found Shop Direct Finance had the most consumer credit complaints opened against in the last six months of 2016 – more than 23,400.
The complaint figures are revealed in the Financial Conduct Authority’s (FCA) latest complaints data, which shows how many grievances against financial services firms were opened, closed and upheld in the second half of last year.
The general complaints data in April included new elements, because the FCA now requires firms including lenders, debt purchasers and collections firms to submit all complaints data, including those that had been resolved by the end of the business day after they were received.
The FCA’s official data therefore now gives specific figures on grievances against individual firms, as well as what products and services are most complained about.
The lender with the most consumer credit complaints in the second half of 2016, after Shop Direct, was Clydesdale Financial Services with around 12,000 – just under half of the amount recorded by Shop Direct. For the same period, Secure Trust Bank was third, recording just over 10,000.
Of these three firms, Shop Direct upheld the most of its complaints – 66 percent. The FCA defined upheld complaints as those which the firm agreed with and had taken action to resolve the issue, through measures including redress.
Top 10 firms with consumer credit complaints
National Westminster Bank upheld 71 percent of all its complaints – the most out of the top 10 firms with the highest number of consumer credit complaints opened against it.
The big picture
Of all types of complaints against financial firms, PPI remained the most complained about product in the second half of 2016, with 895,000 complaints fired off.
Current accounts was next with 514,000, while 172,000 complaints packaged back accounts were recorded- making a collective total of 23 percent of all complaints.
Credit card complaints made up 10 percent with around 313,000 reported.
Of all the complaints about products reported by the FCA, 43 percent were closed within three days and 60 percent were upheld. Some £1.9bn was paid out by firms in redress during the second half of 2016.
Only two percent of all complaints were caused by arrears-related issues – the biggest reason for complaints was general admin and customer service (40 percent).
Christopher Woolard, executive director of strategy and competition at the FCA, said: “Consumers want a simple way to complain that does not leave them out of pocket. And they want to be assured that their concerns will be dealt with fairly and quickly.
“This data will provide us with improved intelligence on complaints including new detailed data to show where industry is potentially failing consumers at product level”.