RBS Insurance has been forced to apologise after staff working for two of its brands – Direct Line and Churchill – were found to have forged complaint files due to reviewed by the financial regulator, which today slapped it with a £2.17m
fine.
In May 2009, as part of its review of complaints handling capabilities, the FSA identified a number of areas where improvements were needed.
And, in February 2010, the regulator informed the firms that it would undertake a review of closed complaint files to further assess the effectiveness.
But while the files were being prepared, 27 were altered improperly before they were submitted because the firms failed to act with due skill, care and diligence.
The firm’s customer relations management carried out two conference calls during which they told staff about the 28% failure in the sample review and that this was unacceptable. Management warned staff that a similar failure during the FSA’s upcoming review could lead to enforcement action and warned them that they faced the sack if they did not tamper with the files.
FSA acting director of enforcement and financial crime Tracey McDermott said: “This is a serious breach. The firms’ attempt to ensure that complete files were provided to the FSA backfired. The firms failed to give clear instructions resulting in staff making inappropriate alterations with one individual even forging the signatures of colleagues.”
RBS Insurance chief executive Paul Geddes said: “We very much regret the findings of the FSA investigation. Although no customers were disadvantaged, we are very disappointed that we did not meet the standards we expect of ourselves and which the FSA expects of us.”
