FSA grants HSBC extension for PPI complaints

The Financial Services Authority (FSA) has granted HSBC a temporary extension to complete processing payment protection insurance complaints.

The FSA has suspended its normal eight week PPI complaints deadline for HSBC along with Royal Bank of Scotland, Barclays and Lloyds Banking Group. HSBC has until the end of August to settle PPI complaints that were placed on hold during the British Bankers’ Association’s judicial review action against the FSA over its complaints handling rules.

The banks will have 16 weeks to process those complaints received after the conclusion of the judicial review but before 31 August. For claims made between 1 September and 31 December 2011, the banks must respond within 12 weeks, according to the FSA.

‘We want to see all PPI claims for compensation dealt with swiftly and appropriately,' said Margaret Cole, FSA interim managing director of the conduct business unit.

'However some firms are facing a huge backlog and now a surge of new complaints which has created a bottleneck. It is not in the interests of consumers to receive further poor handling of their complaints as a result. This temporary extension means that these firms can process these complaints properly and fairly.'