FSA to grant waiver on complaints handling unacceptable, says Fool.co.uk

David Kuo, Head of Personal Finance at Fool.co.uk, says: “We are bitterly disappointed with the Financial Services Authority’s decision to grant a waiver that will effectively allow firms to wriggle free from handling complaints that apply to unauthorised overdraft charges.

“The waiver will mean that banks do not have to deal with these grievances within the normal time period apart from a worthless acknowledgement within five days of receipt of a complaint.

“If the FSA has its way people who are drowning in debt as a result of penal charges will not be able to challenge their banks through the courts, which is the right of every individual. Their ability to pursue claims could be suspended indefinitely through the waiver. Consequently, their debts will continue to multiply, and their worries and anxieties compound along with it.

“We strongly urge the FSA to review the granting of waiver to firms on complaints handling immediately. It is not in the interest of consumers, and it is tantamount to throwing a lifeline to a drowning man – the only problem is the lifeline is too short to reach. This is cruel and nasty, and plays into the hands of lenders who must be laughing all the way to the bank.”