Yahoo Finance Wonga rival sees complaints rise 200% as Lloyds tops overall table, new data shows
Lloyds Banking Group topped the table of the UK’s most complained about financial businesses in the first half of this year, mainly due to PPI issues, according to the Financial Ombudsman Service.
The latest figures show Lloyds-owned Bank of Scotland racked up 23,552 complaints in the six months to 30 June, with 19,589 of those pertaining to PPI, while Lloyds Bank was the subject of 19,996 cases the FOS dealt with.
The lender could not be reached for comment.
Barclays was the third most complained about bank, with 14,085, followed by HSBC, with 7,981, and Santander, with 7,223. PPI was the reason for most complaints for all these lenders.
Meanwhile, payday loan company Casheuronet, which owns QuickQuid and Pounds to Pocket, was the subject of the most banking and credit-related complaints, with 4,692, an increase of 200 per cent.
It marks the first time the company received more complaints than former rival Wonga, which recently collapsed into administration, was the subject of 4,520 complaints.
Wonga said claims management companies were to blame for a rapid increase in claims which ultimately led to its financial ruin, and analysts said it was to be expected that the same firms would now be focusing on other payday lenders.
Casheuronet’s UK managing director Nick Drew said: “Our business is profitable and growing, and we remain excited about the opportunities, especially in light of the diminished competition in the market.”
Casheuronet is owned by US firm Enova International, which has previously warned that it had incurred significant costs as a result of the increase in complaints, and said the FOS had been strict in its interpretation of the rules.
“If the FOS continues to issue findings in this manner, and we are required to continue making significant payments to resolve complaints, such findings could again have a material adverse effect on our business,” the group said.
Commenting on the latest complaints data, the Consumer Finance Association said: “The figures released today are very disappointing and point to the impact of Claims Management Companies on the complaint numbers. Unfortunately, we are seeing some worrying tactics being deployed that are not always in the interests of customers.
“Short-term lending has seen considerable change, and these are largely historic complaints. Most customers borrow without any problems. Customers can now borrow at reduced cost and most avoid incurring any additional fees.
“We would always advise that if customers do have a problem, or a complaint, they should get in contact with their lender as soon as possible. Lenders will look at the individual merits of every case and try to help wherever they can.”
Additional reporting by newswires
