       |
 |
 |
||||
Contact UsTelephone (01904) 701761Fax (0845) 833 1519 Sign-up to our E-Mail News Service Download our Newsletter |
LENDERS FINED OVER PPI MIS-SELLINGEgg-Fined £721,000For serious failings in its sales of payment protection insurance (PPI) to credit card customers. When customers said they did not want PPI, Egg directed its sales staff to use 'objection handling' techniques such as over-emphasising the positive features of PPI or telling them they could cancel it later if they did not want it.L.V.(Liverpool Victoria) -Fined £840,000The company sold the insurance to almost 15,000 customers who took out loans between 2005 and 2007, automatically adding the cost to the loan even if they did not ask for it.Alliance & Leicester -Fined £7,000,000For three years from January 2005 to December 2007 A&L sold around 200,000 PPI policies to customers seeking a personal loan, but there was a general failure by staff to give customers details of the cost of PPI. In addition A&L sought to find reasons to sell PPI without properly considering what customers needed.HFC Bank Ltd -Fined £1,085,000From January 2005 to May 2007, HFC's procedures did not require its staff to gather sufficient information about customers' circumstances and take sufficient information into account when considering whether PPI was suitable. HFC also did not require its staff to fully explain why they recommended a particular policy or identify to customers any demands and needs which the policy would not meet.Capital One (Capital One Bank Ltd) -Fined £175,000From January 2005 to April 2006, Capital One failed to ensure that 50,000 customers received important information about the insurance they had been sold including all exclusions although they did receive a policy summary. The customers were therefore unable to check what they were covered for or if the policy was right for them.Loans.co.uk -Fined £455,000PPI selling failures.Redcats (Brands) Ltd -Fined £270,000Failing to treat customers fairly when selling Payment Protection Insurance (PPI) in connection with home shopping products.Land of Leather Ltd -Fined £210,000For allowing its sales force to sell PPI on loans without effective monitoring or training in place to ensure that the insurance was being sold fairly. |