Saturday, 24 February 2007

Capital One fined for PPI Mis-selling

Capital One Bank has become the latest lender to be fined by the FSA for failing to protect consumers against the risk of being mis-sold insurance policies.

The credit card firm was found to have neglected to ensure that 50,000 customers received important information about Payment Protection Insurance and has been fined £175,000 - although none of the fine will find its way back to borrowers.

The FSA found that Capital One had inadequate systems and controls for selling PPI insurance and thus failed to treat its customers fairly. During 2005, Capital One sold approximately 335,000 PPI policies on UK credit cards.

Margaret Cole, director of enforcement at the GFSA, said: "We are determined to see much better practice in PPI.

"It is unacceptable for people to be put at risk of buying unsuitable protection insurance through not being given the right information at the right time."

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