View more on these topics

FSA fines Capital One £175,000 for PPI misselling

The FSA has fined Capital One Bank £175,000 for failing to have adequate systems and controls for selling PPI and failing to treat its customers fairly.
It is the eighth recent fine handed out by the regulator as it continues its crusade against misselling of the product.
It says the firm failed to ensure 50,000 customers received important information about the policy including exclusions although they did receive a policy summary.
Affected customers were unable to check what they were covered for or if the policy was right for them.
The FSA’s investigation, from January 2005 to April 2006, focused only on credit card PPI sales. In 2005 Capital One sold around 335,000 UK credit card PPI policies.
As part of a remedial programme introduced by the firm to address system and control issues customers who did not receive the policy document had the opportunity to be compensated, with costs of this programme estimated at £3m.
FSA director of enforcement Margaret Cole says: “We are determined to see much better practice in PPI. This fine and other recent PPI-related enforcement cases show we will crack down where firms fail to treat their customers fairly in this area.
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. And consumers should also remember that PPI on credit cards and loans is almost always optional and consider whether they need it before signing up.”


Out of Context

“Cofunds is not a mammal, it is a raptor devouring the competition.”Cofunds public affairs supremo Dick Eats “He’s had plenty of invites but he’s still waiting on yours.”Bankhall’s Richard Howells about CEO Peter Mann holding out for a “better” offer to the Money Marketing awards “I’d love to come if you don’t have to fill […]

Firms sign up to Ascentric platform

Ascentric has revealed the first IFA firms signed up to use its platform as it starts operations after nine months in development.The seven initial firms are Evolve Financial Planning, Beaufort, Pensions Reserve (Park Row), Stafford & Co, Thomas & Gentry, JLT and Sector Investments.Each of the firms will be given share options once they have […]

Cattle drive

Those crazy folk at Kensington Mortgage Company have done their fair share of odd stunts but they may have surpassed themselves last week.Not content with the entire male staff growing moustaches last year in the name of charity, their latest fund-raising trick was to ask journalists to invest in bull semen, yes, you read it […]


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