Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a648502

FSA fines Co-op Bank for freezing PPI complaints process

by Annabelle Williams on Jan 04, 2013 at 10:50

FSA fines Co-op Bank for freezing PPI complaints process

The Financial Services Authority (FSA) has handed a £113,000 fine to The Co-operative Bank over unfairly dealing with payment protection insurance complaints.

The regulator said the Co-op put a hold on many customers’ PPI complaints, when it could have moved forward with the claims.

The FSA added that it had written to the industry making clear that claims should progress normally while the British Bankers Association was unsuccessfully challenging the regulator’s PPI complaints procedure in the High Court.

‘The FSA made it clear that firms must continue to process complaints where possible during the judicial review and we warned that enforcement action could be taken if this was not done, said Tracey McDermott, director of enforecement and financial crime at the FSA.

‘Despite this warning Co-op put in place a policy that was likely to lead to complaints not being dealt with properly during the legal proceedings.’

She added that while customers saw no financial loss from having their complaint put on ice, the delays were still irksome for those affected by the PPI misspelling.

‘We will continue to take action where we find PPI customers have not been treated fairly.’

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this:

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet