MSE News: RBS/Natwest fined £2.8m over poor complaint handling



  • coolesticeking
    chambta wrote: »
    A government department effectively then fining a state owned bank. Not sure how that helps.

    True! - Don't get how that works at all.. :o
    David :)
    £1 of debt is too much for me!
  • Milarky
    Milarky Posts: 6,356 Forumite
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    Who runs Britain? [Hint: not the EU or the DM]

    This is the equivalent of one state-backed organisation (FSA) taking in another's washing (Fine to RBS - now taxpayer owned)

    Not naming the other banks just shows to me how 'bought' the FSA is and how - three years on from the crash which took place under its watch - it doesn't care who knows how bad it is at its job where promoting consumer rights is concerned. Of course if the 'job' of the FSA is merely to uphold the 'business as usual' model then it's done that masterfully - no 'complaints' there.

    Then there's that other private sector solution to unhappy customers - the FOS. If I said the FSA was 'bought' I don't know where to begin describing how useful [not] they are.

    Crass incompetence is very easy to lay at the door of RBS - and no doubt some of it does apply - but unlike the 'regulators' they actually run a business. And poo runs downhill, last I looked.
    .....under construction.... COVID is a [discontinued] scam
  • dunstonh
    dunstonh Posts: 116,669 Forumite
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    Our quality manager today (subsidiary of a high st bank) was saying if a customer takes their complaint to the FOS, the company recieve an automatic 'charge' of £500. 'Great' you might think - after all they've probably messed you around to cause you to complain anyway, but.... who eventually ends up paying those charges - the customer I guess? The FOS must be raking in a serious fortune if 10% of complaints are taken to the FOS? Another Govt dept. making money from 'state owned' banks then....

    The FOS is not a Govt dept. Its funded by the financial services firms regulated by the FSA.
    This is not technically correct, as the charge only applies if the complaint is 'dismissed without consideration of it's merits'. This is where someone looks at the case at FOS, with the evidence and decides if there are merits that have not been considered satisfactorily by the firm.

    That is the theory but despite the high volume of frivolous complaints, the FOS still rarely applies that. It tends to be applied with trouble maker complaints who are putting in complaint after complaint thinking the FOS are charging the firm but in reality are not. I know a mortgage adviser that got charged £500 for a complaint about PPI. He had neither recommended or put in place a PPI. So, PPI didnt exist. It was a try-it-on complaint generated by a dodgy claims company. The complaint was obviously rejected. However, the claims company despite being told there was no PPI still took it to the FOS. You would think that would be a prime example where the £500 fee should not be charged. The FOS rejected the complaint as there was no case to answer but deemed it wasnt frivolous as the person complaining couldn't be expected to know what they did and didnt have! So, he still had to pay the £500.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • chambta
    chambta Posts: 2,770 Forumite
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    The thing is there's no issue per se with the service given by the bank, just the systems they have for tracking and dealing with complaints. How much should Santander be fined for their genuinely appalling levels of service?
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