Results by a recent research indicate that despite the concerted efforts and intensified campaign to create a positive consumer perception, UK banks are still encountering difficulties in handling complaints of their clients. In fact, some quarters are now inclined to attribute the apparent increase in the applications for payday loans to this negative perception of the some consumers with the manner by which some banks handle their issues and concerns. The key findings of the research, which was commissioned by the Consumer Focus, showed that some 75 percent of UK consumers who are not happy with the kind of service that their bank provides will file their complaints and of this number, only 47 percent will not be satisfied with the action or response of the concerned bank.

Aside from these major findings, there are other serious issues that need to be considered. For instance, 25 percent of UK consumers who are not satisfied with the kind of service they get from their banks don’t even file their complaints. Of the number of consumers who are not satisfied with the response or action by their bank, about 31 percent drop the issue altogether and make no further action on it and less than 10% go as far as bringing up the matter to the Financial Ombudsman Service. Nonetheless, the figures include complaints or issues against the bank which don’t have any basis at all. Still, the results of the study should be a cause for concern and stakeholders should take necessary action to address the problems and complaints of UK consumers. These negative issues against banks come close at the heels of the recent research that was spearheaded by the Financial Services Authority which described the procedure adopted by banks on client complaints as below par. A representative of Consumer Focus put it succinctly and explained that UK consumers normally take the initiative in finding redress or resolution to their issues and concerns with their banks.

Unfortunately, a significant number of these complaints are stymied by the apparent inaction or poor response and action by banks. The truth of the matter is that, consumers will have to be persistent enough if they want to get the desired response or action from their banks. And while all of these are happening, we are seeing more and more UK consumers who are now relying on cash advance loans or payday loans for their short term financial relief.