Delayed Co-op PPI Claims result in £113,000 Fine
Posted on: February 8th, 2014 | Author: crystaladmin
The Co-op has been fined £113,000 by the Financial Services Authority (FSA) for stalling on 1629 PPI complaints between January 2011 and May 2011. This was during the time the banking industry was in High Court challenging the FSA’s new rules regarding Personal Protection Insurance (PPI).
Tracy 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 were warned that enforcement action could be taken if this was not done.
Despite this warning the Co-op decided to hold over 1500 PPI Claims during this time .
The FSA reviewed a sample of these PPI claims and found that 100% of these cases could and should have been processed.
Although nobody suffered financial loss, the Co-op failed to handle these cases fairly, they put cases on hold which could of been processed and valid customers left waiting for no good reason.
It was standard practice for banks to put complaints on hold at the time, so it is likely that many other banks may soon suffer a similar fine.
Have you been mis-sold PPI on your Co-op mortgage, loan or credit card?