Banks are facing tough action from the Financial Services Authority (FSA) for their inadequate handling of customer complaints, the body has said.
The FSA revealed today that five banks are changing their approach to dealing with complaints, while two are being investigated further, news which may interest those who may have had cause to complain about their current accounts.
Failings included a lack of senior management involvement, incentive schemes that meant customers did not receive redress even where the bank was at fault and poor procedures that led to multiple responses to complaints.
Director of conduct risk at the FSA Dan Waters said: "While we found some good practice, there is clearly evidence of unacceptable standards of complaints handling in banks."
He added that it is a "major priority" for the FSA to ensure the rules for dealing with complaints are complied with.
Responding to the report, executive director of retail banking at the British Bankers' Association (BBA) said the body is "concerned" about the handling of some complaints.
However, the BBA has already held the first of two seminars aimed at getting senior industry figures to share best practice on tackling complaints, he added.
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