View more on these topics

A&L faces huge redress bill for PPI missales

Alliance & Leicester has been fined £7m for misselling payment protection insurance and has agreed to pay redress to up to 211,000 policyholders.

The penalty is the third-biggest fine ever handed out by the FSA and the biggest-ever retail financial services fine.

The average cost of the 211,000 policies was £1,265, meaning the lender faces a huge compensation bill on top of the fine.

The FSA says A&L’s failings were the “most serious” it has seen. In telephone sales of PPI on unsecured loans between January 2005 and December 2007, A&L failed to give full details of the costs, did not properly consider customer needs and put pressure on customers who queried their need for PPI.

FSA director of enforcement Margaret Cole says: “It is particularly unacceptable for a firm to train its advisers to put pressure on customers when recommending insurance cover which they have not asked for and may not need.”

Group chief executive David Bennett says: “We will write to every customer concerned and work with independent accountants and the FSA to ensure that we put right any disadvantage identified.”

Banco Santander’s takeover of A&L was approved by the FSA, High Court and the Bank of Spain this week.


AIG underwriter moves to Zurich

Zurich Financial Services Group has appointed former AIG chief underwriter Philip Wilson as its chief underwriting officer for global life.

Which way does the wind blow?

It became one of the biggest investment themes of 2007 but will climate change funds lose their appeal as the economic climate gets more hostile?

Graphic content – December; the countries most exposed to a rise in protectionism

President-elect Trump has suggested withdrawing from the North American Free Trade Agreement (NAFTA) and ending negotiations over the Trans-Pacific Partnership (TPP), albeit there is considerable uncertainty over what he will, or even can, do. If one of the main consequences of the election of Donald Trump is US protectionism, it’s worth considering who stands to […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment