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Co-op Bank fined for stalling PPI Claims

4th January 2013

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.

"While nobody suffered any financial loss, Co-op's actions meant that a significant number of people had the resolution of their valid complaints delayed for no good reason," she added.

Source: BBC News

Posted in PPI, Claims, Mis-sold PPI, Compaints, Co-op, Banking, UK

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