Abbey Fined £800k Over Endowments
FSA fines Abbey National plc £800k for mishandling mortgage endowment complaints
25th May 2005
The Financial Services Authority (FSA) has fined Abbey National plc for its mishandling of complaints made about endowment mis-selling.
The regulator found that between October 2001 and September 2003, the bank mishandled around 5,000 endowment complaints, including rejecting 3,500 that should have been upheld.
These wrongly rejected complaints amounted to approximately £19m in compensation not being paid.
The situation was compunded by the bank providing 'inaccurate and potentially misleading information' to the regulator regarding its complaint handling procedures.
The fine of £800,000 would have been far higher, said the FSA, had Abbey's new owners Banco Santander not acted quickly in committing to review all endowment complaints that were rejected since 1st January 2000, and to compensate customers where appropriate.
Read More: FSA Press Release
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