Complaints Rise Over Loans From Banks
If a consumer has a complaint against a financial institution, in the first instance they should contact the actual company itself to allow them to resolve the problem. If this is not satisfactory, then the consumer has the right to take their complaint to the Financial Ombudsman Service (FOS), who will then handle the complaint on their behalf and make a judgement on the case.
During the first six months of this year, the majority of complaints received by the FOS have been regarding homeowner loans and mortgages provided by high street banks, with a large percentage of complaints being upheld by the FOS.
The FOS has decided to name and shame the worst offenders, in order to attempt to get them to change their policies. The Lloyds banking group received the most complaints, accounting for around 30 per cent of all homeowner loan complaints received, with a total of 807 complaints. Barclays received 403 loan complaints and Abbey had 299 complaints brought against them.
Interestingly enough, out of all the Independent Financial Adviser firms and bank loan brokers across the UK, there were only a total of eight complaints made regarding homeowner loans, which reinforces the argument that consumers should seek independent advice when they are looking for a new loan, rather than just approaching their own bank.
A spokesperson for the Lloyds Banking Group said that the number of complaints they had received was minimal in comparison with the total number of loans customers they dealt with and that the bank was committed to treating customers fairly. One financial adviser commented that the figures showed that the large banks were more interested in selling products to customers, rather than providing a comprehensive and valuable service in order to find the most suitable loan to meet their customers’ needs.
