Norwich & Peterborough Building Society insists it is not in any financial danger after the Financial Ombudsman Service issued its first final decision against the society on a Keydata complaint.
In August, a FOS adjudicator ruled against N&P on a Keydata Lifemark product, which was contested by N&P. An ombudsman has now found against the appeal and ordered N&P to pay £28,000. Money Marketing understands N&P has received over 630 Keydata complaints.
Customers can claim compensation through the Financial Services Compensation Scheme but some, particularly those with claims over the limit of £48,000, have complained to the FOS.
An N&P spokeswoman says: “We have looked at what the Keydata liabilities could be and we know we can meet those. We are very well capitalised, this does not put us in any danger.”
Last week, Money Marketing revealed N&P is sending mon- thly holding letters to Keydata complainants. The spokeswoman says: “Until we conclude our discussions with the FSA on how to handle Keydata complaints, the situation is out of our hands.”
Regulatory Legal is handling around 400 Keydata complaints. Director Gareth Fatchett says: “N&P needs to come out of the bunker and deal with the eld- erly customers they have finan- cially damaged.”