Following the industry wide slowdown in Payment Protection Insurance (PPI), Barclays have seen a drop in customer complaints in the first quarter. However, its clients have ramped up their grievances against the bank’s mortgage and general banking services.
Barclays reported a drop in complaints from 210,000 to 145,500 in the first quarter of this year, compared to the same period a year before, mainly because there are less customers claiming against the mis-selling of PPI.
While PPI complaints have dropped for Barclays, complaints excluding this issue have jumped 10% to 51,000 as mortgage complaints surged by 43%.
The head of client and customer experience at Barclays commented; “Whilst total complaints are down, we’ve seen a modest rise in banking complaints this quarter and accept that these numbers reflect historic issues we face as a bank”.
Barclay’s admin and compensation fund accounts for a fifth of the whole industry total of £20bn that has been set aside to deal with the PPI scandal since 2011. Of this total, £14.7bn has already been paid out, according to the Financial Conduct Authority.
Payment Protection Insurance or PPI was originally sold to customers alongside a loan, mortgage or other financial agreement, and would provide cover, should the borrower fall ill, lose their job or be involved in an accident making them unable to make the repayments themselves.
However, there have now been millions submitted claims made by customers to their relevant lenders, stating that they did not want or need the policy in the first place.
Britain’s Financial Ombudsman Service (FOS) said that the number of complaints regarding PPI is ‘still depressingly high’ despite a drop in figures compared between the first half of this year and the same period last year.
The Chief Ombudsman commented: “We’re still a long way from being able to say that Payment Protection Insurance is sorted one and for all” Adding: “Over 1,000 people every day are still asking us to sort out PPI problems that they’ve not been able to resolve directly with their bank”.