HSBC’s failure to meet a deadline for clearing its backlog of Payment Protection Insurance (PPI) mis-selling complaints has put the bank in trouble with the Financial Services Authority (FSA).
HSBC, along with six other banking groups, were forced to resolve people’s PPI mis-selling complaints by midnight on Wednesday 31st August but out of the seven groups, HSBC are the only banking group to have failed to meet this deadline.
FSA to take a hard line
Having previously stated that it is “not afraid to take tough action”, the Financial Services Authority (FSA) may in fact be lenient with HSBC in this case, as the multi-national bank has pledged to clear its backlog.
All complaints processing was put on hold whilst the banks challenged the regulations, but the banks have now been forced to process all complaints as the current system was upheld. This has led a vast number of PPI complaints being eligible for refunds that will eventually run into billions.
But HSBC sent out “decision letters” on the complaints that have failed to contain some of the key information such as the amount of refund its customers are likely to receive.
HSBC in regular contact with the FSA over the matter
A bank spokesman has stated: “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.”
It has been revealed that Lloyds Banking Group had set aside £3.2bn for PPI refunds in contrast to HSBC’s £270m.
“Making a refund application against a bank or other large financial institution can be a daunting prospect, which is why it can sometimes be better to seek help from an organisation like Brunel Franklin, rather than struggle on and be left to try and work out the details for yourself. We operate a no-win-no-fee service and there is nothing to pay until your case is successfully won and the vendor has paid out,” saysSally Bowyer, Managing Director of Brunel Franklin.
Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51.