RBS fined for poor customer complain processes
(11 January 2011 – UK) The Royal Bank of Scotland and its subsidiary NatWest have been fined £2.8 million (A$4.12 million) by the Financial Services Authority (FSA) for failing to deal properly with customer complaints.
The FSA said that in more than half of the reviewed cases the banks responded "inadequately" and that it found "multiple failings" in the way the pair handled complaints.
The banks’ failures included delays responding to customers, poor quality investigations and inadequate explanations for the delays or rejection of the complaints.
The watchdog found that 53 percent of complaints were deficiently handed; 62 percent failed to comply with FSA requirements on timeliness and disclosure of Ombudsman referral rights and 31 percent failed to demonstrate a fair outcome for consumers.
The poor service has been attributed to inadequate training and guidance for relevant staff as well as weak monitoring.
The shoddy service was uncovered during a recent industry-wide FSA review of complaint handling which has already seen five banks move to revamp their processes.
Margaret Cole, managing director, enforcement and financial crime, FSA, said in a statement that they expect firms to treat customers fairly and that consumers can be confident that their complaints will be dealt with properly.
"The failure of these two high street banks to deal adequately with complaints put consumers at unacceptable risk and the fine of £2.8 million reflects this," Ms Cole added.
The banks’ failures included delays responding to customers, poor quality investigations and inadequate explanations for the delays or rejection of the complaints.
The watchdog found that 53 percent of complaints were deficiently handed; 62 percent failed to comply with FSA requirements on timeliness and disclosure of Ombudsman referral rights and 31 percent failed to demonstrate a fair outcome for consumers.
The poor service has been attributed to inadequate training and guidance for relevant staff as well as weak monitoring.
The shoddy service was uncovered during a recent industry-wide FSA review of complaint handling which has already seen five banks move to revamp their processes.
Margaret Cole, managing director, enforcement and financial crime, FSA, said in a statement that they expect firms to treat customers fairly and that consumers can be confident that their complaints will be dealt with properly.
"The failure of these two high street banks to deal adequately with complaints put consumers at unacceptable risk and the fine of £2.8 million reflects this," Ms Cole added.
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