Co-op Bank fined over PPI delay

Jan 4 2013

The Co-operative Bank has been punished by the regulator after it delayed valid claims for payment protection insurance (PPI) compensation "for no good reason".

It is likely that a significant proportion of 1,629 complaints were unfairly put on hold by the Co-op while a judicial review into PPI complaints was in progress, the Financial Services Authority (FSA) said.

Issuing a fine of £113,300, the FSA said it had made clear to the industry that many claims should continue normally while the review was taking place.

Despite the warning, the Co-op put in place a policy that was likely to lead to complaints not being dealt with properly during the legal proceedings, the FSA said.

www.co-operativebank.co.uk/(Co-operative Bank)