Credit Strategy – Credit Market Analysis

The Financial Ombudsman Service’s semi-annual complaint report again revealed a ranking of lenders with most consumer credit cases, with guarantor loan grievances replacing PPI as the number one issue.

For the first time in over a decade, PPI was not the most criticized product, with guarantor loans taking the lead in a trend fueled by claims handling companies in the second half of 2020.

Mortgage business has also increased significantly. The ombudsman received more than 6,000 mortgage complaints, compared to 430 in the same period the previous year. Almost all of these grievances, according to the ombudsman, were about unaffordable loans. Mortgage loans also had the highest maintenance rates – at 84%.

The statistics here show rank tables for two items – banking and credit business, as well as mortgage and real estate finance.

Bank and credit records, S2, 2020

Amigo Loans leads the ranking of banks and credit, with 12,854 new cases filed against the lender guarantor with the mediator, followed by Provident, which was the subject of 10,387 complaints.

Mortgage and real estate financing cases, S2, 2020

Bank of Scotland received the highest number of complaints regarding mortgages and real estate finance, with 839 complaints lodged with the Ombudsman. Next come Santander UK, with 569, and Barclays Bank UK with 475.

NRAM, which has since sold the last of the state-owned Northern Rock and Bradford & Bingley mortgages, had the lowest cases among the top 10 companies.

Global complaints

In quarterly results, for the period from October to December of last year, the FOS received 72,498 new complaints in total, five percent more than the previous three months.

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