FSA to dish out fines to UK banks
The FSA (Financial Services Authority) has today confirmed that two UK banks are in line for significant fines for the mishandling of customer complaints. It was also confirmed that problems have been discovered at five banking groups in the UK, two of which have been referred for further investigation, and five others are currently amending their complaints procedures.
Consumers have been concerned for many years that their complaints were not been handled correctly with allegations of delaying tactics commonplace. It is also believed that there were a number of incentives offered to some banking staff if they were able to avoid compensation payments, even where the bank had been at fault. There was also severe criticism of senior management and a suggestion that directors higher up the employment tree had failed to engage and control complaints procedures and complaints departments.
Even though the FSA has not as yet named the banks in question there is much speculation regarding their identity with the likes of Lloyds bank, Barclays, Royal Bank of Scotland, Abbey and HSBC known to have received large numbers of complaints over the last year. The massive clampdown on the UK banking sector by the FSA appears to be getting stronger as the days go by!
Share this..
Related stories
Wilbur Ross sees Virgin Money on the UK high street
Richard Branson has today announced a new high-profile partner for his Virgin Money operation with US billionaire Wilbur Ross injecting £100 million for a 20% stake in the operation. The US investment guru has also promised to invest a further £500 million into a potential offer for Royal Bank of Scotland branches. This is a major landmark in the history of Virgin Money and indeed puts Richar...
Read MoreThe Irish banking sector under more pressure
While we have already seen the Anglo Irish Bank nationalised after hitting serious financial turbulence, there are this evening even more question being asked of the Irish government and the Irish banking sector. A senior member of the Irish life and Permanent financial giant has been forced to resign after the government announced an investigation into a €7 billion loan. There is speculatio...
Read MoreUS authorities allay fears over bank nationalisation
The US authorities have indicated that the nationalisation of some of the US's largest banks is not on the current political agenda. Federal reserve Chairman Ben Bernanke expressed an opinion that if there was a nationalisation of some of the largest banks in the US this would destroy inherent value which has been built up over years, something which was appreciated by the US stock market which ro...
Read MoreWhat happens now with the Chelsea and Yorkshire building society merger?
Letters of explanation will be sent to Yorkshire and Chelsea building society members within the next 10 days explaining exactly what is on the table and what their voting options are. At least 75% of savers and 50% of borrowers must vote in favour of the deal for it to go ahead, at which point the transaction would be put to the Financial Services Authority (FSA) for clearance. The merged oper...
Read MoreHBOS reveals an £8 billion pound write-down
Today is the day that Lloyds TSB is likely to secure the merger of HBOS with its existing operations as HBOS shareholders get a chance to vote on the move. However, HBOS has come out with a warning that bad debt provisions for the current year will top around £8 billion which is nearly half of the £15.5 billion of emergency capital raised earlier this year.
This has sent a stark r...