Q: The Financial Ombudsman recently issued details of its complaints for the first time, what were the results?

A: Banks unfortunately do not do very well. Indeed Lloyds and its subsidiaries accounted for 15,233 complaints to the Financial Ombudsman Service (FOS) over the first six months of 2009.

This includes complaints to the FOS but not complaints direct to the firm. Complainants have to complain firstly to the firm who have a chance to put the situation right before the complainant has the choice to accept the firm’s decision and refer on to the FOS.

Lloyds and its subsidiaries accounted for more than a fifth of all complaints to the Ombudsman. Interestingly seven banks each had more than 2000 complaints, which accounted for almost half the total complaints the FOS received. The largest firm of IFAs, Sesame, had just 144. St James Place Wealth management and Santander asset management are also listed in the report. (1)

Barclays suffered almost 8300 complaints, Bank of Scotland more than 5,800, and Abbey National, HSBC, MBNA Europe and Natwest all received more than 2000. The Royal bank of Scotland received more than 1812.

The regulator hopes that by shaming the biggest culprits, they will put their house in order and not only deal with complaints quicker before the FOS is involved, but also ensure customers are treated more fairly so that they do not have to complain in the first place.

It is most interesting that of the 69,841 complaints received at the FOS during the first six months of the year that just 144 were received by Sesame the largest IFA firm. It is a clear sign that Independent Financial advice is the most trusted option but consumers should not let their guard down in this respect.

Of the complaints above, almost 60% were actually upheld by the FOS showing that the customers were indeed justified in their concerns.