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Daily Insurance Industry News
Thursday 21st of June 2018
January 19, 2012

Direct Line and Churchill fined for file tampering

by Gill Montia

Story link: Direct Line and Churchill fined for file tampering

Direct Line and Churchill fined for file tampering Direct Line and Churchill fined for file tampering

The Financial Services Authority (FSA) has imposed a fine of £2.17 million for failings by insurers Direct Line and Churchill, both of which are owned by Royal Bank of Scotland (RBS).

According to the regulator, the firms failed to prevent files that the FSA had requested from being improperly altered.

During the collation of 50 complaint files requested by the FSA for review, 27 were altered improperly before being submitted.

However, most of the alterations were minor in nature and none of the changes resulted in any customer detriment.

The 83% taxpayer-owned RBS is responsible for paying the fine.

Tracey McDermott, the FSA’s acting director of enforcement and financial crime, comments: “The Firms’ attempt to ensure that complete files were provided to the FSA backfired.”

She adds: “The significant penalty is … intended to underscore to firms that it is of critical importance that material provided to the FSA must reflect the picture as it is – not as they might like it to be.”

 

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