Why isn't Firethorn Holdings (apps developer) updating their apps?
Firethorn Holdings, the developer of many iPhone banking apps, has not issued any updates to make their apps compatible with iOS 4.2.1. They do not respond to end-user complaints, either by phone or by email. The "customer service" person I talked to had no idea what I was talking about and told me to contact my bank. There are a multitude of folks who depend on their banking apps and now have none.
What is Apple's policy regarding uncooperative apps developers?
This is a user forum. We have no knowledge of Apple's control of the iTunes store. Contact the developer directly. If that's not possible then consider switching to a different app.
"An upgrade of the Mobile Banking application was submitted to Apple for certification on November 24th for compatibility with the iOS 4.2 software release. We are still in queue for our upgrade to be reviewed and posted on iTunes. Thank you again for your patience as we await Apple's review."
I don't know how long it will take for Apple to review the app, if Firethorn's information is correct, but I would expect approval before long unless there's something seriously wrong with the app.