Banks hit by 20m complaints over mis-selling scandal
The banks have received more than 20 million complaints since the financial crash five years ago, according to a new study that spells out a stark summary of the cost of the crisis.
New City Agenda, a think tank whose directors include former Treasury Select Committee chairman John McFall, said consumers had made 20.8 million complaints since 2009 and cases referred to the banking adjudicator, the financial ombudsman, had risen fivefold.
The study, conducted with Cass Business School, found that a “rotten” culture had taken grip over two decades during which staff had been incentivised to sell products by the offer of rewards including iPods, tickets to sporting events and cash bonuses.
A series of mis-selling scandals from payment protection insurance to foreign exchange manipulation had cost the British banks £38.5 billion in fines and compensation over 15 years.
PPI compensation alone cost Lloyds Banking Group £11.3bn, Barclays £5bn, RBS £3.3bn and HSBC £2.5bn.
“A toxic culture which was decades in the making will take a generation to turn around,” said David Davis, chairman of New City Agenda.