In the dark old days of personal finance, complaints data were closely guarded as powerful industry figures argued that they were of little use.
Even now some attempt to argue that their firms receive more complaints merely because they are larger. As they all know, this is errant nonsense. Complaints data reveal much about the ethos of a firm and its attitude to its customers.
So the latest released by the Financial Conduct Authority made for interesting reading. Historically the key piece of information has been the percentage of complaints upheld measured alongside the number of complaints. But the new data can also tell us how good firms are at resolving complaints quickly – giving us an idea of how belligerent they are.
Is it really likely that when dealing with large numbers of decumulation and pension complaints one firm would uphold 59 per cent and another 81 per cent?
Are the firms that uphold a lower number of complaints saddled with more frivolous customers or are they, as a company, taking a tougher stance?
This will only become clear with time as more data are released under the new regime and as we consider the numbers who then complain successfully to the ombudsman.
Sticking with pensions and decumulation, we can see that Scottish Widows closed 76 per cent of complaints within three days while Aviva managed only 27 per cent in this time period. Both had a similar uphold rate of about four in every five.
Then let us consider Abbey Life, part of the Phoenix Group. Its uphold rate is just 38 per cent. It closes just 36 per cent of complaints with three days and 57 per cent between three days and eight weeks.
Pensions and decumulation are, perhaps, the most difficult areas for swift action because the issues can be so complex.
But that is no excuse for shelving them or attempting to fob off the more difficult customers.
Firms will always make mistakes, whether through computer or manual error or a failure of oversight. There will always be vexatious complaints from customers who are impossible to please.
Complaints data ensure that a regular focus is put on to customer service and there is pressure on firms to resolve them – and where possible to do so swiftly.
Tax code errors
Royal London reckons that 800,000 people under state pension age who are receiving pensions are at risk of having the wrong tax code. It probably does not surprise you that complaints about HMRC, particularly from pensioners, form a meaty part of my mail.
I can also relate tales closer to home.
A few years ago my wife’s coding notice included a mysterious new figure for assumed savings interest. It was fabricated by a computer and shockingly inaccurate. Then at the end of 2015 she reduced her working time to three days a week and began drawing her teachers' pension.
We told HMRC, but despite this her 2016/17 tax code was startlingly wrong. Then for 2017/18 HMRC randomly decided to award a D0 code on her teacher’s pension, meaning it would all be taxed at 40 per cent.
My wife is a basic rate taxpayer so the correct code should have been BR.
HMRC is bound to struggle when there is a change of circumstances and it is not told. But in many cases I deal with it is fully informed and still plugs out the wrong figures.
For example, a friend who is struggling with a sick husband was shocked to be presented with fines for failing to pay a capital gains tax bill. In fact HMRC owed her money, but she still felt frightened and bullied by the stream of letters and a failure to respond to written correspondence.
My conclusion? Either HMRC’s computer has been hopelessly programmed or those running HMRC are hopelessly incompetent.
Either way it is an organisation with too much power and too little conscience.
Workplace financial education
About three-quarters of the 1,801 employees surveyed by Capita Employee Benefits felt that improved workplace financial education would help them with issues such as pensions and buying a property.
The workplace can certainly offer a counterpoint in a world where many are happy to indulge in a splurge of borrowing without registering the cost, yet feel investing is only for the intrepid.
Some employers would argue that it is not their responsibility to provide such education. And I suppose that advice could be tainted, especially by firms keen to offload historic pension promises.
But work is where many people spend most of their waking hours, so it is a logical place for a bit of extra-curricular financial activity.
Tony Hazell writes for the Daily Mail's Money Mail section.
