Release Date: 14th April 2015
To access the original FCA document, click here.
Summary
Who was fined:
- Clydesdale Bank Plc
Why the FCA fined them:
- The FCA fined Clydesdale Bank £20,678,300 for serious failings in its Payment Protection Insurance (PPI) complaint handling processes between May 2011 and July 2013.
- The bank implemented inappropriate policies that led to PPI complaint handlers not considering all relevant documents.
- Clydesdale provided false information to the Financial Ombudsman Service regarding PPI records, misleading them about the documents held.
- These actions resulted in the potential unfair rejection of up to 42,200 PPI complaints and inadequate redress for up to 50,900 upheld complaints.
Key Takeaways for Other Firms:
- Integrity in Complaint Handling: Ensure that all relevant documents are considered when handling customer complaints.
- Transparency with Regulators: Provide accurate and truthful information to regulatory bodies and ombudsman services.
- Document Retention Policies: Review and update document retention policies to ensure relevant documents are not improperly excluded from complaint investigations.
- Adequate Training: Ensure complaint handlers are well-trained and monitored to identify unsuitable policies and handle complaints fairly.
- Proactive Redress: Proactively review past complaints and offer redress to affected customers to rectify any previous mishandling.
By adhering to these principles, firms can avoid similar regulatory penalties and ensure fair treatment of their customers.
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