Clydesdale hit by £20m fine for PPI faking
CLYDESDALE Bank was fined £20.7m yesterday after the City watchdog found some of its staff had faked payment protection insurance (PPI) documentation when processing some compensation claims.
The bank provided false information to the Financial Ombudsman Service (FOS) when the officials requested information.
In some cases, staff removed PPI from lists of products sold to customers, and altered system print-outs to make it look as if the bank held no relevant documents.
“In ignoring documents it held which were relevant to its customers’ complaints, Clydesdale failed to treat its customers fairly,” said the Financial Conduct Authority’s acting enforcement boss Georgina Philippou.
“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.”
The Clydesdale and Yorkshire Banks’ acting chief executive said she “deeply regrets” that the FOS received incorrect information.
“We got this wrong and I am sorry for that,” said Debbie Crosbie.