Business

HSBC given extra time to deal with PPI complaints

HSBC cash machines
Image caption HSBC set aside £269m for compensation payments earlier this year

HSBC has been given extra time by the Financial Services Authority (FSA) to deal with a backlog of complaints about payment protection insurance policies.

The FSA has granted the bank the same leeway given earlier this week to Lloyds, Barclays and RBS.

Normally they would have to deal with complaints within eight weeks.

Tens of thousands of complaints were put on hold during a recent High Court hearing and now they must be settled by the end of August.

New complaints received since the end of the judicial review on 20 April, but received before 31 August, must be dealt with in 16 weeks.

PPI complaints received after the end of August, but before the end of this year, can be dealt with in 12 weeks.

From then on, the normal eight-week timetable will apply.

"The arrangements extend the time periods HSBC has to deal with their backlog of stayed PPI complaints and the high volume of new complaints on PPI and have been put in place to ensure that the firms are able to handle the PPI complaints properly," the FSA said.

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