Half a million complaints during lockdown: Resolver’s six-month statistics
Resolver Blog
Over lockdown we have seen extraordinary changes to society that have had a huge impact on the nation, how we live, interact, seek help and get by. Often complaints are a barometer of the things concerning people at a specific moment in time. Resolver’s latest complaint figures are unique because we can share them with you more or less just after they happen, so you can see precisely what people are seeking help for today.
However, Covid-19 has resulted in decisions and rules that affect our lives changing incredibly quickly. So as the nation faces another round of tighter restrictions, our six-month complaints data is a snapshot of what has brought us to this point, but we can also reveal significant hints about what the future holds.
Complaint volumes
Complaints have been significantly influenced by restrictions imposed by lockdown and the removal of services we either need or previously paid for. That said, Resolver saw more than half a million complaints over the six months to 30 September 2020 – up 11% on the previous six months.
In almost all our main sectors, complaints increased in April and peaked in May or June. At this point, lockdown restrictions eased, with some services starting to operate again and complaint levels dropped – but are still up on the previous year.
August is traditionally one of periods where people complain the least, though this August we saw complaints begin to increase again as people continued to pursue issues that hadn’t been resolved over lockdown. This trend continued over September.
What’s notable about October is that we’re starting to see the signs that complaint levels are increasing in areas that had been relatively stable up until recently, with energy, broadband and finance complaints now growing.
The impact of the pandemic and lockdown has had a massive impact on the things people complain about. In summary though, the nation prioritised what mattered the most.
Two issues drove complaints at the start of lockdown; online supermarket shopping and deliveries and getting refunds or rebooking holidays. Problems with non-supermarket retailers have taken over since, and the travel industry continues to prompt thousands of complaints every week.
At first, complaints about finances didn’t increase as much as you might expect. However, it’s likely that the Government support measures, from furlough to loans for businesses, helped people with financial issues during this time – though certainly not all people. It’s worth noting that this may change as redundancies are announced, Government schemes end, mortgage and loan holidays finish and bans on evictions and repossessions expire.
Customer relations and contacting firms
More than half the complaints received by Resolver’s users over lockdown explicitly mention customer service problems. Many directly mention not being able to contact a business by phone or email, with wider customer service issues mentioned in the vast majority of cases.
A number of companies removed their customer service options in the struggle to cope with demand in the first few months of lockdown. Disappointingly, many have still not brought them back and our research shows that some have taken the decision to make it much harder to complain since lockdown instead of investing in customer service at a time when it’s more vital than ever.
Complaints about online shopping topped the list between April and September 2020, with the volume up 114% on the previous period to 147,803 complaints. This is perhaps inevitable as people were forced online to purchase essential (and not so essential) goods.
Complaints about panic buying and availability of stock in supermarkets made up most of the shopping-related complaints at the start of lockdown, but supermarkets managed to get on top of things pretty quickly compared to other sectors. What came to dominate shopping complaints were problems with other online retailers. By far the most complained about issue in recent months involves shops selling goods, yet not having customer service teams or people to process returns in time. This led to many questions about the Consumer Rights Act and whether shops were meeting their obligations under the law – we found many weren’t.
Interestingly, complaints about the high street only dropped by 2% to 36,683 cases, despite shops not opening for the first few months of lockdown. This has bucked a downward trend in complaints about the high street in recent years. Complaints about high street shopping were more variable and often linked to the experience people encountered when they arrived in-store, from customer service to the enforcement of face masks.
Package delivery has risen again to become the second most complained-about issue across our top 100 products and services, with 54,401 cases in the past six months. It’s worth noting that a considerable number of the complaints in the ‘online shopping’ category are about delivery issues. Worrying, we’re increasingly hearing about delivery companies making it harder to contact them and issues to do with damaged packages are also rising.
Complaints about travel agents rose to become the third most complained about service – with online travel companies making up the bulk of complaints. There were 46,704 complaints about them in total – up 108%) – which primarily focused on problems with getting refunds paid, despite advice from the Competitions and Markets Authority on when they should be given. We’ve also seen an increase in people telling us that some firms are not refunding money returned by airlines and hotels for holidays booked through the travel agents.
It won’t come as a surprise to anyone to hear that some sectors of the travel industry didn’t exactly cover themselves with glory during the lockdown.
Across travel, there were more than 79,000 complaints covering travel agents, airlines, tour operators, airport parking, holiday apartment lets and hotels. Within this, complaints about airlines actually dropped by 41% to 22,047, but this is misleading. Prior to lockdown, complaints were almost exclusively about flight delay and cancellation refunds. Without flights taking off, the complaints have instead focused on refunds, customer relations and other issues to do with rebooking.
Looking at our latest data, it would seem that issues to do with charges for moving bookings, refunds and allegations of overcharging for staycations are starting to have an impact.
Complaints about financial services cover a wide range of products which can make it difficult to draw conclusions about the sector as a whole. What is notable is the fact that complaints about financial services did not take off until the first three months of lockdown had passed. Complaints were certainly high – around 9,000 a month during March to May. However, from June onwards, complaints had reached around 12,000 a month across the sector.
Looking at the underlying issues, it seems the initial support schemes announced by the Government (furlough, mortgage and loan holidays, small business support) seem to have bought the nation some breathing space. But as these schemes ended or have been phased out, complaints have risen. For the first few months of the pandemic, the complaints we saw focused on refunds, disputed transactions and fraud, suggesting people were taking the opportunity to take a closer look at their finances. However, recent complaints are focused on mis-sold loans or credit products, financial difficulties and other issues to do with making ends meet.
Anecdotally, we’re hearing about long delays on telephone helplines and concerns about fraud reporting. But our complaints are beginning to indicate that people are finally seeking help for financial difficulties. As we go into the new year, these complaints will inevitably increase as finances fundamentally alter along with personal circumstances.
However, the devil is in the detail. Look closely at our data and you’ll see big increases in complaints. Complaints about loans are 157%, for credit cards there is a 24% rise and buy now pay later credit complaints are up 22% along with consistently high levels about packaged accounts, payday loans and current accounts.
Complaints in the energy and broadband sectors fell by 19% and 12% respectively over lockdown, though this may be related to circumstance rather than satisfaction.
Energy complaints are largely bill or service driven – and we’ve experienced very warm weather over lockdown. Undoubtedly, there will have been an extra drain on energy bills from people being at home more, but the impact on the summer months on energy bills tends not to become apparent until people turn the heating on and start to give readings. So it’s perhaps inevitable that complaints will increase over the next few months.
Broadband became an increasingly essential service as the nation went online more for business, leisure and to keep in touch with loved ones. Again, service issues and bills drove complaints over the past six months. Broadband services are often fixable without the need to access a property, meaning problems could be addressed while maintaining social distancing. Many of our users seem to have been grateful just to have had access to the internet and streaming services, yet there are still a stubbornly high number of complaints about contracts, exit fees and customer service in this sector.
Notes on the data
Our latest statistics cover complaints made between 1 April and 30 September 2020. Comparing six-monthly data can be complicated as many complaints are seasonal and vary significantly throughout the year. On top of that, the complaints Resolver has seen over lockdown have been fundamentally different to the previous periods.
While comparative data is interesting in some senses, it’s best to view the last six months as a ‘stand-alone’ period for the nation. Though we can see the beginnings of new trends in our data, the next few months will be volatile and reactive to the pandemic, Government responses and finances of people more generally.
While our data does suggest changes in the things people complain about, the only thing we can be sure of in the coming months and years is that adaptability will become vital for businesses and consumers alike – and support must continue for those in need and the industries we rely on too.
