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corporate plan and 2008/09 budget

January 2008

complaint trends

enquiries

Enquiries to our 'front-line' customer contact division, by telephone and in writing, have increased during the year, mainly because of the overdraft-charges issue. They are expected to reduce significantly in 2008/09, in line with our estimate of new complaints.

  actual
2006/07
budget
2007/08
forecast
2007/08
budget
2008/09
phone calls to our enquiry line 341,410 290,000 350,000 260,000
written enquiries 286,359 240,000 285,000 210,000
total 627,769 530,000 635,000 470,000

new complaints

The total number of new complaints is expected to fall. This reduction is mainly due to a further fall in mortgage-endowment complaints, and to overdraft-charge complaints being put on hold during the current High Court case.

types of complaint actual
2006/07
budget
2007/08
forecast
2007/08
budget
2008/09
endowments linked to mortgages 46,134 32,000 14,500 10,000
pensions 3,687 4,000 4,000 4,000
other investments 13,108 10,000 9,000 10,000
banking and loans 15,733 17,500 54,800 24,000
insurance 15,730 14,500 19,000 21,000
consumer credit 0 2,000 2,000 3,000
total 94,392 80,000 103,300 72,000

mortgage endowment complaints

We have assumed that the number of new cases about mortgage endowments will reduce significantly in 2008/09, mainly as a result of their falling outside the time limits set by the FSA for bringing complaints. We expect the number of new mortgage endowment cases to fall from about 14,500 in 2007/08 to 10,000 in 2008/09.

banking complaints

In July 2007 the OFT and FSA announced a test case in the High Court on charges for unauthorised overdrafts. This also involved the FSA granting a waiver enabling current-account providers to put relevant complaints on hold, pending the outcome of the High Court action. We are assuming that no further complaints of this type will be referred to us until the test case is finally resolved, apart from financial-difficulty cases and small-business cases.

We have completed those cases, referred to us before the High Court case was launched, where offers had been accepted by customers. However, approximately 14,000 cases remain on hold, awaiting the outcome of the test case in the courts. It is unclear how long it will take for the litigation to run its course and how much subsequent work will remain for us to do on individual cases. So we have erred on the side of caution and assumed that these cases may not be finally closed during 2008/09. To avoid materially distorting the figures, we have excluded them from the work-in-progress ratios for the year.

We are assuming an underlying increase of 5% in complaints about other banking products.

other complaints

We are assuming an increase of 10% in insurance-related complaints, partly because of the media focus on payment-protection insurance, and a similar increase of 10% in investment complaints.

Our new consumer credit jurisdiction came into force as recently as April 2007. So we have only limited experience to use as a foundation for future forecasts. But we do not expect this jurisdiction to produce significantly more complaints in 2008/09 than in the current year.

closures

Cases resolved and closed in 2008/09 are expected to fall to 84,000, reflecting the lower number of adjudicators following our restructuring, together with a change in the overall mix of cases.

timeliness

The time taken to resolve and close a case is expected to improve in 2008/09, with approximately two out of every three cases closed within three months and 80% of cases expected to be closed within six months.

workload plans

opening work-in-progress actual
2006/07
forecast
2007/08
budget
2008/09
mortgage endowment cases 47,572 29,829 13,329
other cases 16,745 17,207 29,007
total 64,317 47,036 42,336
new complaints actual
2006/07
forecast
2007/08
budget
2008/09
mortgage endowment complaints 46,134 14,500 10,000
other complaints 48,258 88,800 62,000
total 94,392 103,300 72,000
cases resolved actual
2006/07
forecast
2007/08
budget
2008/09
mortgage endowment cases 63,877 31,000 14,000
other cases 47,796 63,000 70,000
total 111,673 94,000 84,000
closing work-in-progress actual
2006/07
forecast
2007/08
budget
2008/09
mortgage endowment cases 29,829 13,329 9,329
other cases 17,207 29,007 21,007
total 47,036 42,336 30,336
bank charges on hold 0 14,000 14,000
total 47,036 56,336 44,336
work in hand (weeks) actual
2006/07
forecast
2007/08
budget
2008/09
mortgage endowment cases 23.9 52.9 34.7
other cases 18.6 22.3 15.6
total 21.7 29.8 18.8
productivity actual
2006/07
forecast
2007/08
budget
2008/09
mortgage endowment cases 4.5 2.8 3.0
other cases 3.6 4.5 4.6
total 4.1 3.7 4.3
% closed within 3 months actual
2006/07
forecast
2007/08
budget
2008/09
mortgage endowment cases 19 15 15
other cases 51 60 65
total 34 45 60
% closed within 6 months actual
2006/07
forecast
2007/08
budget
2008/09
mortgage endowment cases 44 35 35
other cases 81 85 85
total 61 70 80
% closed within 9 months actual
2006/07
forecast
2007/08
budget
2008/09
mortgage endowment cases 69 50 50
other cases 89 90 90
total 76 75 85
% closed within 12 months actual
2006/07
forecast
2007/08
budget
2008/09
mortgage endowment cases 79 60 60
other cases 92 95 95
total 85 80 90
image of corporate plan and 2008/09 budget

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