Companies fined for mishandling complaints
The FSA has fined Guardian Assurance plc and Guardian Linked Life Assurance Limited (Guardian) £750,000 over the way it mishandled mortgage endowment complaints and for failing to notify the regulator of concerns.
Problems were discovered late in 2004,when it was found that 5,600 customers whose mortgage endowment complaints were rejected, had not been fairly or adequately investigated. It was also found that Guardian had ongoing concerns about risks and systemic problems associated with its new complaints handling process, but it did not bring these concerns to the attention of its FSA supervisors.
“Guardian failed to treat its customers fairly by exposing those with a valid complaint to the risk that their complaint could be rejected inappropriately.” said FSA’s Director of Enforcement. The consumer organisation Which was a little more scathing saying “It appears they deliberately introduced complaints handling systems that would treat their customers unfairly. Furthermore, they then acted irresponsibly by not alerting the regulator when the systemic problems became clear to them.” Which believed the regulator should have made an example of Guardian and imposed record fines.
Guardian committed to provide compensation to customers who had endured losses as a result of inappropriate procedures.
