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FCA fines lender £2.4m over PPI complaints failure

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The FCA has fined CT Capital £2.4m for serious failings in its treatment of payment protection insurance complaints.

CT Capital was the parent company of a group of lenders and loan brokers and sold around 31,000 PPI policies between 2005 and 2008.

It received £63m in commission as a result.

However, the regulator says the firm failed to put in place appropriate processes for handling 6,660 PPI complaints between May 2011 and November 2013.

The FCA says the effect on individuals was “potentially significant”. Average redress payments for upheld complaints is £6,000.

CT Capital was aware of rules around handling PPI complaints in December 2010 but did not make the required changes to its processes until November 2011.

In addition, the firm operated a flawed policy that saw complaints incorrectly rejected because of a misunderstanding among staff of when claims became invalid.

Following FCA intervention, CT Capital paid around £74m in PPI redress up to January 2016.

Today’s fine qualified for a 20 per cent reduction because it was settled early, otherwise it would have been £3m.

FCA director of enforcement and market oversight Mark Steward says: “Failing to handle complaints appropriately means that firms risk treating customers unfairly for a second time and it’s important that firms get this right.

“We have taken action against firms on numerous occasions and there’s no excuse for firms continuing to get it wrong. We remain determined to ensure that firms put right the harm caused by PPI mis-selling and regain the trust of the public.

“We will continue to monitor how firms are dealing with complaints and will not hesitate to take action where we see firms not complying with their obligations.”

Last year, the FCA fined Clydesdale Bank £20.6m and Lloyds Banking Group £117m – the largest-ever retail fine – for failure to handle PPI complaints fairly.



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  1. Julian Stevens 1st June 2016 at 2:38 pm

    And just where was the FSA when these thousands of mis-sales were taking place?

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