FSA fine Bank of Scotland over complaint errors
Customers of the Bank of Scotland are looking like they're going to receive £17m in compensation after the company mishandled complaints about investment products. Sadly, this £17m is going to be split between loads of you, as opposed to you getting £17m each, which would've been nice.
The Financial Services Authority (FSA) have fined BoS £3.5m after they found that many complaints which should have been upheld were in fact rejected by the bank.
It appears that policies were being sold to older customers who had virtually no knowledge of investing and the bank has apologised, promising to review the 8,614 of cases of rejected complaints.
This all came about because the Financial Ombudsman Service received appeals from investors who thought that they'd had their complaints rejected wrongly, which led to an investigation into the Bank of Scotland's Collective Investment Plan, the Personal Investment Plan, the Guaranteed Growth Bond, the ISA Investor and the Guaranteed Investment Plan.
"This fine reflects the Bank of Scotland's serious failure to treat vulnerable customers fairly," said Tracey McDermott, the FSA's acting director of enforcement and financial crime.
Ray Milne, risk director at Bank of Scotland, told the BBC: "We recognise that on this occasion we have fallen short of the high standards of service our customers should be able to expect of us and we apologise to them for this. We are committed to putting this right. I would like to assure customers that the issues relate to processes that are no longer used today. We are in the process of contacting affected customers and will pay compensation where it is due."
Customers who have had rejected complaints don't need to do a thing. If the review now upholds their complaint, you'll be compensated automatically by the end of July.