Why do new customers start off hating their bank? Because it saves time later, so goes the old City joke.
Figures today suggest it is more than that with the biggest banks getting the most complaints by customers, according to the Financial Conduct Authority (FCA).
In total, banks paid out £236.2m to complainants, with the average pay-out totalling £215, for various issues including unfair treatment, the mis-selling of products and unclear contracts.
The FCA recorded 187,516 complaints about Lloyds Banking Group in the last six months of 2025. Lloyds is the biggest bank in the UK with around 28 million customers across mortgages, savings and credit cards.
That figure includes the Lloyds Bank brand, which had 90,837 complaints, and the Edinburgh-based brand Bank of Scotland, which had 79,508.
A Lloyds spokesperson said. “We care about getting things right for customers and, when something doesn't work as it should, we listen and learn.”
Santander has around 14 million UK customers and received 78,349 complaints.
“Santander is committed to delivering the best possible service for customers,” a spokesperson said.
“We review complaints data regularly to identify areas where customer experience can be improved and to inform ongoing changes to our processes.”
A small majority of customer complaints are upheld – 55.5 per cent this time, compared with 57.9 per cent in the first half of 2025.
The banks have lately recorded strong profits as interest rates have held firm. Banks make most profits on the gap between what they pay savers and what they charge borrowers.
NatWest was the least complained about of the high street giants, with 61,482. Barclays has 72,000 and HSBC 67,308.
Some banks, Lloyds notably, are facing a bill for car loan mis-selling. Lloyds has warned that it faces a £2bn hit and has criticised the FCA process for working out compensation.
The banks are accused of hiding commissions paid to brokers as part of car loans.
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