Customer Complaints Data

January - June 2011

Complaints Data

Following a public commitment at the beginning of 2011 to reduce complaints, new data reflecting first half performance shows Lloyds Banking Group delivered a 24 per cent reduction in FSA reportable complaints which fell from 193,799 to 147,600 year-on-year. This is against a target reduction of 20 per cent. (These targets and performance are based on FSA reportable complaints and exclude PPI/ Insurance complaints)

  • The Group’s reportable FSA complaints over this period have fallen from 2.4 complaints per 1000 accounts to 1.7 complaints.
  • The half year performance also shows a reduction of at least 25 per cent in the number of complaints referred to the Financial Ombudsman Service.
  • The number of complaints overturned by the Financial Ombudsman Service has fallen to two in five.

“We are making significant progress in improving our customer service and in reducing the number of complaints we receive. However, we must not be complacent and we recognise that we still have more work to do. That is why we have now set clear and challenging targets to further reduce complaints for the second half of 2011.”
António Horta-Osório, Chief Executive,
Lloyds Banking Group

“These results show real improvement and I am keen that we maintain this momentum. In order to ensure that we do, we have introduced a professional complaint handling qualification, developed by the Chartered Banker Institute, which all of our Complaint Handlers will undertake by the end of 2011. We will be the first financial services institution to have qualified complaint handlers.”
Martin Dodd, Customer Services Director,
Lloyds Banking Group

Improving our complaint handling

We have introduced a specialist team to dramatically improve the way that we handle complaints:

1. Quicker complaint resolution by a specialist team
The first staff member to be contacted by a customer will always try to resolve the complaint immediately. If they do not have the knowledge to do this, they can call our new specialist Phone a Friend Team (PAF) for immediate, practical advice on how best to do so.

2. Named case workers for customers
In instances where the complaint cannot be resolved at the first point of contact , or with the direct support of the Phone a Friend Team, then the customer will be put in touch with a named individual caseworker from the Customer Services team.

At the same time, the customer will be provided with an estimate of how long the complaint will take to resolve and when to expect further contact from their caseworker with an update. This results in quicker resolution and a more personal service for customers.

Improving our customers’ complaint experience

The Phone a Friend team started work in October 2010 and has already made a difference to our customers’ complaint experience.

  • Also, our 40,000 customer-facing and call-centre staff have received extra, in-depth training on the handling of customer complaints.
  • Our top 100 leaders in the retail bank are spending one day, per month, working amongst our complaint handling teams - dealing with complaints and experiencing our customers’ frustrations first hand. We believe this programme will help us fix the things that cause complaints in the first place.

Results of our new approach to complaint handling

Speed of response
We are now resolving 90% of customers’ complaints at first touch, in branch or over the telephone, with the help of the Phone a Friend team.

Complaints reduction
We have reduced the number of FSA banking complaints per 1,000 accounts from 2.4 to 1.7 – a reduction of 24% compared to the first half of 2011.

Customer Experience
In the first six months of 2011, we improved our customers’ view of complaint handling by over 9 points – this is measured by Net Promoter Score, the way we evaluate how our customers assess us.

This further demonstrates that our new approach to complaints handling is having a positive effect and is moving us in the right direction.

We are maintaining our focus on fixing the things which cause customers to complain in the first place, and we will continue to resolve the complaints we do receive intelligently and promptly.

More information…

To help you interpret the information we have provided a glossary of terms which explains key references in the publication reports.

The Financial Services Authority publishes collective complaints data covering all firms.

The Financial Ombudsman Service publishes separate complaints data on the number of complaints referred to it by individual firms.

To view complaints information for any firm of Lloyds Banking Group reporting more than 500 reportable complaints in the previous six month reporting period you can click on the links below each of the brands.