It’s been a while since we’ve heard anything about payment protection insurance (or the mis-selling of), but today the Financial Services Authority slammed a £113k fine on the Co-op for failing to treat its customers fairly when they complained about the issue.
The problem arose because in 2010 the British Bankers’ Association and Nemo Personal Finance launched a judicial review, which challenged the FSA’s policy statement on how PPI complaints should be handled.
Whilst the review was ongoing, the Co-op did not abide by the FSA’s original guidance on how to handle the complaints, even though it received a letter telling it to do so during that period.
The judicial review was eventually dropped in around May 2011, but the FSA said the Co-op did not make the correct changes in response to the letter. Apparently, this unfairly delayed the process of dealing with customer complaints or giving them refunds where necessary.
In a statement on Friday, the Co-op said: ‘The Co-operative Bank recognises that during the relevant period, it put some complaints on hold which were capable of being progressed without waiting for the judicial review to be concluded.’
‘We are confident that this would not occur again if similar circumstances were to arise,’ it added.