HSBC to miss FSA PPI complaints deadline
Share
HSBC has admitted it will not meet a deadline imposed by the FSA for banks to clear their backlog of complaints about payment protection insurance.
Usually under FSA rules all complaints must be handled within eight weeks. But a judicial review brought by the British Bankers’ Association into the FSA’s redress measures in October caused a backlog of complaints as banks put PPI claims on hold.
In May the High Court ruled against the BBA, and in June the FSA agreed a temporary extension to the rules which gave banks until today to issue customers with a decision on their claim.
It has emerged today that HSBC, while it has written to all customers who complained about being missold PPI, has not advised all customers with an upheld complaint of the amount of compensation they will receive.
An HSBC spokesman says: “Over the past 12 weeks we have been in weekly contact with the FSA over our processing of customer PPI complaints.
“We have already written to all customers whose complaints were on hold, due to the judicial review, with a decision on their complaint and will have communicated the final redress amount to all customers with an upheld complaint by the end of this week. The FSA is supportive of our approach.”
Barclays, Lloyds Banking Group and RBS have all said they have met the FSA’s deadline.
It follows FSA figures published yesterday which revealed that banks paid out £215m in compensation during the first half of the year to customers missold PPI.
In May Lloyds announced it had set aside £3.2bn for PPI redress. Barclays has set aside £1bn to cover the cost of compensation, RBS has set aside £850m, and HSBC has made a £269m provision. Estimates of the cost of PPI misselling range from from £6bn to up to £10bn.
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
