FSA 'takes action on poor complaint handling'

28/04/2010

Written by Tom Davis

The Financial Services Authority (FSA) has announced it is set to take tougher action on poor complaint handling.

According to the watchdog, it has evidence of five banks having demonstrated weakness when tackling consumer complaints.

Following the review, the five financial service providers are now undergoing major changes, while two of them will be subject to further investigation.

The FSA review looked at a number of banking groups responsible for 70 per cent of complaints companies receive and report to it, of which over 60 per cent were resolved by the Financial Ombudsman Service.

Professional indemnity insurance can provide some protection in the event that a claim is made against a financial group, so long as they have demonstrably dealt with customer complaints in the correct manner.

Dan Waters, the FSA's director of conduct risk, said: "A culture of fair complaint handling is an important indicator of whether a firm is committed to treating its customers fairly."

PYV's director of claims Robert Bass comments: "This clearly demonstrates the need for effective and objective complaints handling within a business. Refuting complaints without the correct analysis is a false economy as it betrays the trust of customers and undermines the relationship with the regulator."


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