Ombudsman criticises 'cynical' banks

14/04/2009

Financial services firms, including Britain's big banks, are facing fierce criticism from the ombudsman.

The companies have been accused of "cynicism" and taking a "jaundiced view" of the general public - due in part to their own problems they are suffering in the credit crunch.

Walter Merricks, chairman of the Financial Ombudsman Service (FOS), also said that cutbacks at crisis-hit banks had led to headcounts at customer services departments being reduced - worsening the problems.

The FOS is the UK body that deals with customer complaints regarding financial firms.

Banks including HBOS, Lloyds TSB and RBS have been forced into accepting emergency government bailouts after losing vast sums in the credit crunch.

The latter bank declared a UK record £24 billion loss in 2008 - while two others, Northern Rock and Bradford & Bingley, have been nationalised entirely.

Mr Merricks said: "Some in the financial services industry - currently facing significant business challenges - appear to be taking the jaundiced view that having a large number of complaining customers is just an unfortunate fact of life.

"So they seem to be geared up simply to dispose of complaints at minimum cost - and with minimal attention to the individual facts and circumstances… We find ourselves having to play the part of emotional shock absorbers."

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