Because of its mishandling of PPI complaints from consumers, the Financial Conduct Authority (FCA) had fined £2.4 million against CT Capital.
The financial institution had consumers miss entitled compensation after it failed to install appropriate processesthat would allow 6,669 PPI complaints to receive proper recompense from May 2011 to Novermber 2013.
FCA said CT Capital took almost a year to follow the FCA’s rules regarding complaints handling. Even after 2011 when it started to repay consumers their refunds, CT’s policies were flawed.
“Failing to handle complaints appropriately means that firms risk treating customers unfairly for a second time and it’s important that firms get this right,” said the FCA’s head of enforcement, Mark Steward.
An employee for CT Capital in Norwich, eastern England, said the company was not making a comment.
Following a 2012 regulatory review by the FCA, CT Capital overhauled its procedures in 2013. It had then handled about 4,800 complaints thereafter rejected by the bank. By January 2016, it had paid out about £74m for PPI compensation including interest for PPI sold two decades ago.
According to most analysts, the pressure placed on banks in repaying PPI as quick as possible will not help. They said banks refuse to raise further legal issues about payment protection insurance because it will cost resources and paying them out is quicker and more affordable.