Lloyds Banking Group is deploying what is billed as one of Europe's largest complaints handling systems.

The Lloyds complaints system will help it address the deluge of enquiries it is receiving in relation to the payment protection insurance (PPI) charges it often incorrectly levied against customers' accounts. Other financial services providers are also in the process of modifying their complaints systems to cope with PPI enquiries.

Lloyds has brought in Charter UK for its Charter Continuum complaint and feedback management software platform, which is being rolled out across its call centres, branches and other customer-facing sites.

Martin Dodd, customer services director at Lloyds Banking Group, said: "We are introducing the Charter system to help us manage complaints in the most effective and efficient way."

With the new system Lloyds says it will benefit from having a single complaints management system running across its entire group. The consolidated approach promises greater consistency and improved efficiency across the bank's operations, "ensuring that all complaints are dealt with in exactly the same way and to the same standard", it said.

Charter Continuum enables organisations to capture, manage and analyse complaints and feedback to increase customer service efficiency. McDonalds, Toyota, Virgin, Hertz and Bank of America also use Continuum.

Last month Lloyds Banking Group said it had completed the "immense" system integration of its HBOS business, which is aimed at dramatically cutting costs. However, it has experienced a number of technical problems.

Earlier this month Lloyds slashed another 400 UK IT jobs as part of ongoing cost cutting.