All claims for Clydesdale PPI compensation dealt with before August 2014 are to be reviewed after the FCA found failings in the bank´s claims handling.
The FCA ordered a review of claims for Clydesdale PPI compensation after discovering that the bank implemented “inappropriate policies” for the handling of customer complaints and then misled the Financial Ombudsman Service with false information when customers appealed the banks´ decisions.
An investigation by the FCA revealed that claims for Clydesdale PPI compensation on mortgages and loans were automatically rejected when the credit agreements had been repaid more than seven years prior to the complaint. This was because the Clydesdale Bank has a seven year document retention policy, and – even though the relevant documents had not been destroyed – customers were told that they were beyond the time limit to make claims for Clydesdale PPI compensation.
The investigation also revealed that a team within Clydesdale Bank tampered with system printouts to delete all PPI-related information when records were requested by the Financial Ombudsman Service to resolve customers´ complaints. This also affected claims for Clydesdale PPI compensation relating to missold PPI on credit cards after claims handlers ignored any information held by the bank prior to 2000.
It was also identified that claims handlers were failing to identify cases where the PPI policy was unsuitable for the customer, and deficiencies in the training and monitoring of claims handlers was found. Overall, the FCA believes that 42,200 claims for Clydesdale PPI compensation were unfairly rejected and a further 50,900 claims were settled for less than the customer was entitled to.
As a result of the Clydesdale Bank´s “inappropriate policies”, the FCA fined the bank £29,540,500 – reduced to £20,678,300 as Clydesdale Bank accepted the fine and paid it in full at an early stage – and ordered that all claims for Clydesdale PPI compensation prior to August 2014 were reviewed.
Georgina Philippou, acting director of enforcement and market oversight at the FCA said:”Clydesdale’s failings were unacceptable and fell well below the standard the FCA expects. The fact that Clydesdale misled the Financial Ombudsman by providing false information about the information it held is particularly serious and this is reflected in the size of the fine”.
Ms Philippou continued: “We have been very clear about how firms should treat customers who may have been missold PPI. In ignoring documents it held which were relevant to its customers’ complaints, Clydesdale failed to treat its customers fairly.”Read More