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The Markets
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Banks

Lloyds most complained about bank in first half, Financial Ombudsman reveals

Lloyds and its units received 38,609 complaints during the first half, according to the Financial Ombudsman Service

Lloyds Banking Group PLC (LON:LLOY) has topped a list of complaints about banks and insurers in Britain over its payment protect insurance (PPI) mis-selling scandal.

The Financial Ombudsman Service said in a statement that complaints in the first half to June totalled 170,000, up 13% on the second half of 2016.

READ: Lloyds' former risk officer initially refused to sign off on HBOS loan facility, lawsuit alleges

PPI complaints came to 90,000, with Lloyds in the lead.

Lloyds and its units received 38,609 complaints during the first half.

Bank of Scotland, which is part of Lloyds, was in the top spot with 20,541 complaints, including 17,080 about PPI.

Lloyds itself was second on the list with 18,068 complaints, including 14,847 related to PPI.

Lloyds’ recently acquired credit card business, MBNA Limited, came in at 10th place with 4,368 complaints, mainly about PPI.

READ: Former Lloyds CEO Eric Daniels sues for unpaid bonuses

A spokesperson for Lloyds said: "When things go wrong, we learn from our mistakes. Where complaints are referred to the Ombudsman they agree with our decisions in the majority of cases."

Lloyds set aside an extra £1bn in the first half to cover claims for mis-sold PPI, bringing its total provision to £18bn.

Fellow lender Barclays PLC (LON:BARC) also made the top 10 with 15,405 complaints. The lender set aside an extra £700mln for PPI claims in the first half, taking its total bill to £9.1bn.

In contrast Royal Bank of Scotland dropped out of the top 10 list of complaints with 1,361 new cases.

The ombudsman last week launched an advertising campaign featuring Arnold Schwarzenegger telling people they have until April 2019 to lodge a PPI complaint. The watchdog expects an influx of PPI claims ahead of the deadline.

Arnold Schwarzenegger features in new PPI campaign https://t.co/DXpdqwrmIv

— MARCUS SHIELDS (@MARCUSIMF) 4 September 2017

Chief ombudsman Caroline Wayman said: "While we still don’t know what impact this will have on our workload, today’s data shows that PPI complaints are already increasing."

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