FCA warns banks to improve complaints handling

FCA warns banks to improve complaints handling




Banks must do more to improve how they handle complaints about mis-sold packaged bank accounts, the Financial Conduct Authority (FCA) has warned.

Despite introducing new rules on packaged bank accounts in 2013, a recent FCA review found that too many customers who have complained about being mis-sold packaged bank accounts in late 2014 did not get the right outcome.

The FCA claimed that this conclusion was supported by the number of complaints upheld by the Financial Ombudsman Service during the same period.

Jonathan Davidson, executive director of supervision for retail and authorisations at the FCA, said: “We continue to believe that there is a place in the market for packaged bank accounts, as they can provide good value and convenience for consumers.

“But we expect these products to be sold fairly and for customers to have the information they need to make an informed choice.

“And customers should not have to complain to the ombudsman to get a fair outcome if things go wrong.”

Under the 2013 measures, banks are required to establish and record whether customers are eligible to claim for any insurances offered through a packaged account.

The FCA’s review suggested that while eligibility checks for travel insurance had improved, firms had more to do for insurances such as gadget protection and motor breakdown cover.

The regulator is now undertaking a further review of more recent complaints regarding packaged bank accounts to better understand the extent to which firms have raised their standards.

1 Comments

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    Clara King

    A good friend of mine recently discovered that she was spending an unnecessary amount of money on a Packaged Bank Account (PBA), something she neither needed or wanted. She went through EMCAS to sort out her claim and the customer service was great. This is their site if anything thinks they may be experiencing the same problem http://www.emcasclaims.co.uk/financial-misselling/have-i-been-mis-sold-a-pba/7

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