View more on these topics

Compliance consultant criticises systems for PPI

Barclays have been accused by compliance consultant Adam Samuel of sending out misleading information on payment protection insurance after applying for a credit card with the bank.

Samuel claims Barclays’ systems are issuing personalised recommendations on PPI to applicants who do not want to take out the product and says the notices do not reflect their circumstances or information disclosed to staff.

Samuel says he refused to discuss taking out PPI when applying for a Barclaycard at one of the bank’s branches. But he says he was given a statement of demands and needs, seen by Money Marketing, that he says makes claims he does not agree with about his financial situation and the conversation that took place over PPI.

Samuel says: “It suggests in a number of places that I have applied for insurance and that I have rejected advice and that I need insurance. None of these statements is correct nor reflect the conversation that I actually had.”

He believes that the bank could be breaching FSA principle 7 and Icob 2.2.2, which state that companies must communicate information in a way that is clear, fair and not misleading.

Samuel adds that he does not consider the bank’s systems are compliant with regulatory requirements.

He says: “When, at the request of a customer, no discussion occurs about payment protection insurance but the firm spews out a letter from the computer with a string of inaccurate statements, this suggests that the bank’s systems and controls are not appropriate to its business.

“It also suggests that the firm has not taken reasonable care to establish and maintain effective systems and controls for compliance with applicable requirements and standards under the regulatory system.”

A Barclays spokesman was unable to comment on Samuel’s case specifically but says: “In general, when we sell payment protection insurance with a Barclaycard, we always point out that the cover is optional and provide the customer with relevant policy details and exclusions.”


CML predicts 7% price fall

The Council of Mortgage Lenders is forecasting that house prices will drop by 7 per cent by the end of this year despite the fact that lending was up 5 per cent in April.

What exactly is product innovation?

By Fiona Tait, Pensions Specialist Ros Altmann reportedly hoped for more product innovation following pension freedom¹ and, according to one poll, 66 per cent of advisers also believe that providers should be doing more². This article considers whether there is a real client need for new products, or whether we should be focusing our attention on efficient delivery […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm