FSA fines RBS and NatWest

| January 11, 2011 | 0 Comments

The Royal Bank of Scotland (RBS) and its NatWest subsidiary have been fined by the Financial Services Authority (FSA) for “multiple failings”.

The fine of £2.8 million was imposed because there was an “unacceptably high risk that customers may not have been treated fairly” due to not handling customers routine complaints in a proper manner.

The FSA said the fine included delays in customer response, poor quality investigations into complaints and lack of communication with its customers.

Both banks agreed to settle at an early stage in the investigation and therefore qualified for a 30% reduction on the original fine of £4 million.

Last year, UK banks were criticised by the FSA for the poor way in which they dealt with complaints.

As a result of an industry-wide review, banks were told to improve their procedures.

Commenting on the fine, RBS said it acknowledged the poor way it dealt with the complaints.

Brian Hartzer of RBS said: “We recognise the importance of complaint handling for our customers and are focused on addressing the root causes of complaints.”

Meanwhile, Margaret Cole, the FSA’s managing director of enforcement and financial crime, said: “We expect firms to treat customers fairly and that consumers can be confident that their complaints will be dealt with properly.”

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