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Co-op bank fined £113,300 for stalling over PPI claims
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Co-op bank fined £113,300 for stalling over PPI claims
The Co-op bank has been fined £113,300 by the Financial Services Authority for delaying complaints about Payment Protection Insurance (PPI). The bank put 1,629 complaints on hold in the first half of 2011, while the banking industry was in the High Court challenging the FSA's new PPI rules. The FSA warned the banking industry at the time that complaints should be dealt with as normal. The Co-op admitted that its procedures had "fallen short". The bank had wrongly put the complaints to one side until the court case was lost. Tracey McDermott, the FSA's director of enforcement and financial crime, said: "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. 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....Read more here on this story: BBC News - Co-op bank fined £113,300 for stalling over PPI claimsTags: None
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