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Barclays warns PPI complaint levels to rise

Barclays warns PPI complaint levels to rise

Category: Banking

Updated: 14/12/2012
First Published: 25/08/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Barclays has reported a significant reduction in the number of complaints it received in the first half of the year.

The high street bank said volumes overall had dropped by 14% compared with a year earlier to 251,563.

A focus of its efforts on improving matters within its core business, banking, was particularly successful, resulting in a 32% year-on-year fall in complaints.

Complaint volumes in relation to payment protection insurance (PPI), however, have soared.

The bank confirmed it received 73,692 complaints regarding insurance in the first six months of 2011, the majority of which related to PPI, 93% higher than in the same period in 2010.

At the same time, the bank said it expects complaints about PPI to continue to rise in the second half of the year.

"Barclays is working hard to clear PPI complaints as quickly as possible; prioritising customers who were held up in the judicial review and resolving all complaints in a transparent and efficient manner," it added.

In June, the bank promised to compensate all customers to whom it sold PPI and who made a complaint before 20 April.

It also announced that affected customers will receive back all their premiums plus interest of 8%.

Potential claimants are thought to number tens of thousands, with the bank having previously put around £1 billion aside to cover the eventual cost it expects to have to pay out.

Any complaints the bank received after the automatic reimbursement date of 20 April are being reviewed 'on merit'.

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