FSA investigates RBS and Lloyds over complaints handling - papers

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The FSA is investigating government-backed Lloyds Banking Group and RBS over poor complaints handling.

The regulator found evidence they were rewarding staff who put bonuses before the fair handling of customer disputes or whose senior managers took little interest in complaint resolution, the Financial Times reports. The FSA has demanded five banks make change to the way they deal with complaints, after a report, triggered by record volumes of complaints about payment protection insurance, found some banks were encouraging poor complaint handling by paying staff bonuses to keep redress down to set levels. Read more...

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