Wealth Manager - Essential news for investment professionals

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

FSA fines Co-op Bank for freezing PPI complaints process

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 or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Play Colin McLean's mid-cap picks

Colin McLean's mid-cap picks

The SVM director and fund manager on his pick of the UK mid-caps.

Play Gervais Williams: the real reason to worry about Quindell

Gervais Williams: the real reason to worry about Quindell

Citywire AA-rated manager Gervais Williams has argued that sentiment is the true danger to Quindell.

Your Business: Cover Star Club

Profile: Psigma's Edinburgh boss on why he is in Scotland long term

Profile: Psigma's Edinburgh boss on why he is in Scotland long term

When Tim Wishart agreed to launch an Edinburgh office for Psigma he was not expecting to  head the company’s first overseas team

Wealth Manager on Twitter