Mike Fotis

New complaints data is a missed opportunity and will not help consumers

Yesterday the UK financial regulator released complaints data for the second half of 2016. While this happens every six months, yesterday was meant to be different. This data was meant to arm consumers with information to make more informed decisions, and ultimately empower people to make the financial world better. Sadly, it turned out to be a lost opportunity.

So what did change? As a result of Policy Statement 19/15, the Financial Conduct Authority (FCA) has released more information than ever before. From 30 June 2016 all complaints handled by a regulated firm became reportable (previously it was just complaints dealt with by the close of the next working day). To enable fairer comparison between businesses, complaint volumes have also been set in the context of the size of the business.

The FCA stated that it wanted this new data be more informative. In its own words: ‘Greater transparency of complaints information will enable consumers looking to invest or buy products to be better informed about the products that have caused concern for other consumers.’ But the data released is as useful to consumers as an ice pick on the Titanic.

To help demonstrate this, I plotted the results of the FCA’s Banking and Credit Card complaints per 1,000 accounts against some of the data held on the website I run, Smart Money People, for some of the UK’s leading banks. What I found was a strong correlation between information already in the public domain, and what the FCA has just revealed, four months after the fact.

While it’s rather comforting to see a familiar picture – I’ll admit, I still get a warm feeling when the Coca-Cola Christmas trucks drive across the TV screen in December – the fact that this data is not furthering our understanding makes it a real lost opportunity.

Already a subscriber? Log in

Keep reading with a free trial

Subscribe and get your first month of online and app access for free. After that it’s just £1 a week.

There’s no commitment, you can cancel any time.

Or

Unlock more articles

REGISTER

Comments

Don't miss out

Join the conversation with other Spectator readers. Subscribe to leave a comment.

Already a subscriber? Log in