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Barclays receives 251,563 complaints in six months!

Barclays receives 251,563 complaints in six months!

Contractor accountants who bank with Barclays may want to think about switching their accounts after news that the high street bank received one complaint per minute in the first six months of this year.

According to data from the FSA, Barclays received 251,563 complaints and in over 50% of cases they admitted that they were in the wrong. Lloyds TSB came second on the gripe list, with 181,907 complaints whilst Spanish owned Santander came third with 168,888.

Barclays was the worst bank for complaints last year and although it claims to have made progress, that does not seem to be reflected in these latest statistics. Every day, almost 1,390 customers either wrote letters or phoned to complain about Barclays’ products from January to June this year.

At the other end of the scale, the Royal Bank of Scotland received 68,331 complaints and HSBC – 76,188.
While businesses are depositing more money in UK banks, the meagre interest they earn on their deposits is being eroded by inflation to such an extent that they are losing over £10 billion a year.

In July 2001, deposits from private businesses in the UK totalled £136 billion. In July this year, the figure reached £242 billion and that excludes companies in the financial sector. However, data from the Bank of England shows that £37.7 billion of that money is deposited in business accounts that yield 0% interest.

UHY Hacker Young explained that banks have been trying to improve their lending margins and this has led to them offering very low rates on business cash deposits. Derek Young, a partner at the firm, said that if it wasn’t for the current economic uncertainty, a lot of businesses would be better off investing the money back into the business or distributing it among shareholders rather than building up a cash cushion.

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Image: Quejas y Reclamos by Andres Rueda

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