RBS And Natwest Fined For 'Multiple Failings'
Banks are facing new pressure with RBS and NatWest fined £2.8m by the financial regulator.
RBS and NatWest together make the second largest banking provider in the UK
The Financial Services Authority (FSA) said there was an "unacceptably high risk that customers may not have been treated fairly" due to faults in the way RBS and Natwest handled customer complaints.
Specific reasons for the fine included delays in customer response, poor quality investigations into complaints and inadequate communication with customers.
The FSA said there were "multiple failings" in more than half of the cases they reviewed.
Margaret Cole, from the FSA, said: "The poor complaints procedure of RBS and NatWest came to light during our review of complaint handling in major banks.
"The review showed that banks need to make major changes to handle consumer complaints fairly and the FSA will continue to take appropriate action to ensure these changes are put in place."
Both banks have co-operated fully with the regulator, receiving a 30% reduction on the original £4m fine for agreeing to settle at an early stage of the investigation.
The banks have joined three others in agreeing to make significant changes to their complaints handling arrangements following the FSA review.
Brian Hartzer, from RBS, said: "We acknowledge the findings of the FSA investigation.
"It confirmed short comings in our routine complaint handling that we assessed in our own internal review and which we are committed to putting right."
Natwest and RBS are retail subsidiaries of the Royal Bank of Scotland Group, which is 84% owned by the state.
The two banks together have approximately 2,200 branches and 15 million customers in the UK.
The group recently came under renewed criticism over plans to award a £2.5m bonus to its head Stephen Hester.
source skynews
