Thursday, 1 February 2007

GE Capital Fined for PPI Mis-selling

GE Capital has been fined £610,000 by the FSA in the latest action against lenders for PPI mis-selling.

The FSA's final notice to GE Capital highlights a series of failings to ensure that borrowers received accurate advice on PPI policies, including:

  • Failure to review and change sales processes to ensure accurate and appropriate information;

  • Despite evidence available that sales staff were not appropriately advising consumers, GE Capital failed to implement proper training;

  • Despite having management information available from the middle of 2005 onwards that sales processes were failing consumers, GE Capital failed to act to ensure that they hhad in place proper monitoring systems to check compliance with FSA requirements;

  • Staggeringly, despite its knowledge that many consumers would have been mis-sold PPI policies GE Capital failed to put in place any programme to provide redress and to compensate its customers

  • GE Capital provided PPI to 850,000 consumers in 2005 with a premium value of nearly £8 million.

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