FCA commentary H2 2019 Overview
- According to the FCA, PPI complaints accounted for 62% of the complaints received during this period.
- The volume of complaints related to PPI increased from 2.12m to 3.71m between H1 2019 and H2 2019.
- Excluding PPI complaints, the volume of complaints received increased from 2.18m to 2.31m between the two periods.
- The most complained about products were PPI, current accounts, credit cards and other general insurance products.
- All sectors have seen a drop in their average 3 day closure rate and an increase in their average complaints resolved after at least 8 week rate between the two periods.
Banks and Building societies
- Complaints in this sector accounted for 67% of the complaints raised in H2 2019. However, it should be noted that a large majority of PPI complaints will also feature in this statistic.
- Banks and building societies saw an increase of 60.8% of the number of complaints opened in H2 2019 vs H1 2019.
- This sector was the only sector that saw a decrease in the average number of complaints resolved between 3 days and 8 weeks. As they also saw a slight decrease in their average 3 day closure rate, this suggests that the influx of PPI complaints at the August deadline would have meant complaints deadlines were not being met within the regulatory timeframe.
- Banks and building societies have seen the average number of complaints upheld decrease by 6% between H1 2019 and H2 2019.
General Insurers and protection
- Complaints against general insurers accounted for 15% of the complaints raised in H2 2019.
- The general insurance and protection sector saw the second biggest increase in the number of complaints opened between H1 2019 and H2 2019 at 19.5%.
- This sector saw the highest average 3 day closure rate in H2 2019 at 41.3%. However, this had reduced by 3.5% since H1 2019.
- The uphold rate for the general insurance sector has also reduced very slightly (-0.6%) between the two periods.
Investment and asset management
- This sector received the smallest number of complaints for H2 2019 – 36,849.
- In addition, complaints volumes reduced by 6.4% between H1 2019 and H2 2019.
PENSIONS AND RETIREMENT INCOME
- The pensions and retirement sector has seen the biggest decrease (-8.5%) in the average number of complaints closed within 3 days going from 42.9% in H1 2019 to 34.4% in H2 2019.
- However, the sector has seen an increase of 5.8% in the average number of complaints resolved between 3 days and 8 weeks between H1 2019 and H2 2019. This suggests that despite complaints not being closed within 3 days, 60% of them will then be closed within the regulatory timeframe of 8 weeks.
- The uphold rate for this sector also decreased by 6.4% between H1 and H2 2019.
- Complaints about retail lending firms accounted for 16% of the complaints opened in H2 2019.
- Despite the sector seeing a decrease in the average complaints resolved within 3 days (-6.8%), their resolution rates for between 3 weeks and 8 weeks has remained fairly stable at 60.8% in H2 2019 vs 60.5% in H1 2019.
- Therefore, it is no surprise that the average resolution rate of complaints that fell outside of the regulatory timeframe for retail lending firms increased 14.7% (+6.6%) for H2 2019.
- This was the only sector to not reduce the average number of complaints upheld between the two periods. Instead the average uphold rate remained consistent at 37.9%.
*This analysis is constructed using Huntswood firm classification based on primary business activity and is worked on a best endeavours basis