PPI Claims After HFC Fined Over PPI Miss Selling
HFC Bank has been fined more than £1 million by the City watchdog for deficiencies over the way it sold payment protection insurance (Ppi).
The Fsa (Financial services authority) said the penalty of nearly £1.1 million was the largest it had ever levied over the sale of the cover.
The regulator said failings at HFC Bank, which offers secured and unsecured loans, put its patrons at an “unacceptable risk” of being sold Ppi that was not suitable for them.
It said between January 05 and May 2007 the group’s procedures did not want advisers at its then 136-strong branch network to gather sufficient information about consumers’ circumstances or to take it into account when considering whether Ppi was suitable.
It added that staff were also not required to explain fully why they recommended a particular policy or to identify to clients any demands and needs which the policy would meet.
The Financial services authority said HFC did not have an adequate system to train and monitor its staff or to ensure that potentially unsuitable sales were identified and investigated, while its records of deals were also inadequate.
Ppi covers repayments on credit cards and loans if the holder loses his or her job or is unable to work due to an accident or illness.
But the £5 billion market has been criticised in contemporary years over claims that the insurance is overpriced and being mis-sold to people who would never be able to claim on it.
The Fsa said in September, that while there had been improvements in some areas, lots firms selling Payment protection insurance were still failing to treat consumers fairly.
Financial services authority director of enforcement Margaret Cole said: “We are determined to see much superior practice in the Payment protection insurance market. HFC’s shortcomings put its patrons at risk of buying unsuitable protection insurance and the financial impact on them of unsuitable advice was likely to be significant.”
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