Wealth Manager - the site for professional investment managers

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 JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter