New figures from the Financial Conduct Authority (FCA) reveal that the UK's largest high street banks paid out a total of £236.2 million to customers who lodged complaints in the second half of 2025. The average compensation payout was £215, covering issues such as unfair treatment, mis-selling of products, and unclear contracts.
Lloyds Banking Group Tops Complaint List
Lloyds Banking Group, the UK's largest bank with approximately 28 million customers across mortgages, savings, and credit cards, received the highest number of complaints at 187,516. This includes 90,837 complaints for the Lloyds Bank brand and 79,508 for Bank of Scotland, based in Edinburgh.
A spokesperson for Lloyds stated: "We care about getting things right for customers and, when something doesn't work as it should, we listen and learn."
Santander and Other Banks
Santander, which serves around 14 million UK customers, received 78,349 complaints. A Santander spokesperson commented: "Santander is committed to delivering the best possible service for customers. We review complaints data regularly to identify areas where customer experience can be improved and to inform ongoing changes to our processes."
Barclays received 72,000 complaints, HSBC 67,308, and NatWest had the fewest among the high street giants with 61,482.
Uphold Rates and Profit Context
A small majority of customer complaints were upheld – 55.5 per cent in this period, compared to 57.9 per cent in the first half of 2025. The banks have recently reported strong profits as interest rates have remained firm, with profits largely derived from the gap between savings and lending rates.
Car Loan Mis-Selling Issue
Some banks, notably Lloyds, face potential costs from car loan mis-selling. Lloyds has warned it could face a £2 billion hit and has criticised the FCA's process for calculating compensation. The allegations involve hidden commissions paid to brokers as part of car loan agreements.
