Co-op fine ‘first of many’

The managing director of the PPI claims company MoneyBoomerang predicted the £113,300 FSA fine paid by the Co-op last week would be the first of many.

Mr Lowther said: “It is interesting that the FSA focued on the early stags of the PPI debacle. All of the lenders put claims on hold in the early days.

“Even now we are still finding a disproportionate number of offers being made to settle cases.

Article continues after advert

“I would like to see fines in respect of previous delays and ongoing activity, especially as the Co-operative was by no means the worst.”

The City watchdog claimed that the Co-op failed to process complaints while the trade body the British Bankers’ Association was attempting a judicial review, that subsequential failed, into paying compensation.

A statement from the Co-operative Bank accepted that while there had been no financial detriment, the delays were unnecessary.

The BBA and the FSA declined to comment when asked if other banks were being investigated.