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NAB-owned UK bank fined over PPI scandal

The UK’s Financial Conduct Authority (FCA) has fined Clydesdale Bank a record £20.67 million ($39.62 million) over failures in its handling of payment protection insurance complaints.

It is the largest FCA fine relating to insurance mis-selling. The regulator found serious failings at NAB-owned Clydesdale between May 2011 and July 2013.

Of the 126,600 complaints decided in these years, the FCA says up to 42,200 may have been rejected unfairly and up to 50,900 resulted in inadequate customer redress.

Up to 93,000 customers may be entitled to refunds or additional compensation.

“In ignoring documents it held that were relevant to its customers’ complaints, Clydesdale failed to treat its customers fairly,” FCA Acting Director of Enforcement and Market Oversight Georgina Philippou said.

“Clydesdale’s failings were unacceptable and fell well below the standard the FCA expects. The fact that Clydesdale misled the Financial Ombudsman by providing false information about the information it held is particularly serious and this is reflected in the size of the fine.”

Between May 2012 and June 2013 the bank provided false information in response to requests for records on payment protection policies, with a team member deleting and altering records.

“Clydesdale will be reviewing all payment protection insurance complaints handled before August last year and offering redress to any customers affected by these failings,” the FCA says.