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HSBC faces trouble over PPI complaints as deadline looms
Originally posted by 5corpio
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HSBC could find itself in trouble with the Financial Services Authority after it emerged the bank will fail to meet a deadline for clearing its backlog of payment protection insurance (PPI) mis-selling complaints.
Six banking groups, including HSBC, were given until midnight on Wednesday to resolve PPI mis-selling claims that were put on hold during the long court battle over the way people's complaints were to be assessed. It is understood HSBC will miss the deadline because it has failed to tell all its affected customers whose claims have been successful how much compensation they are to be offered. There was speculation that another bank may be set to miss the target by a very small amount.
The FSA has already warned it is "not afraid to take tough action" against any firms that do not deal appropriately with complaints. Consumer body Which? said any banks failing to meet the deadline should be punished. However, HSBC may be hoping that its pledge to have all its cases sorted out by the end of this week means the regulator will take a lenient view.
The six banks – HSBC, Barclays, Lloyds Banking Group, Royal Bank of Scotland, the Co-operative Bank and Egg – were granted the temporary extension by the FSA to ensure their backlogs of complaints were handled properly. Many firms had decided to put some or all of their PPI cases on hold when the banking industry mounted a legal challenge to the......Read more on this story: HSBC faces trouble over PPI complaints as deadline looms
Bank fails to tell all victims mis-sold payment protection insurance how much compensation they will receive.
HSBC could find itself in trouble with the Financial Services Authority after it emerged the bank will fail to meet a deadline for clearing its backlog of payment protection insurance (PPI) mis-selling complaints.
Six banking groups, including HSBC, were given until midnight on Wednesday to resolve PPI mis-selling claims that were put on hold during the long court battle over the way people's complaints were to be assessed. It is understood HSBC will miss the deadline because it has failed to tell all its affected customers whose claims have been successful how much compensation they are to be offered. There was speculation that another bank may be set to miss the target by a very small amount.
The FSA has already warned it is "not afraid to take tough action" against any firms that do not deal appropriately with complaints. Consumer body Which? said any banks failing to meet the deadline should be punished. However, HSBC may be hoping that its pledge to have all its cases sorted out by the end of this week means the regulator will take a lenient view.
The six banks – HSBC, Barclays, Lloyds Banking Group, Royal Bank of Scotland, the Co-operative Bank and Egg – were granted the temporary extension by the FSA to ensure their backlogs of complaints were handled properly. Many firms had decided to put some or all of their PPI cases on hold when the banking industry mounted a legal challenge to the......Read more on this story: HSBC faces trouble over PPI complaints as deadline looms