PPI Fine for Division of HSBC
Controversy over Ppi, which stands for Ppi, has been raging for some time, after a review of Ppi sales by regulatory bodies found that lots policies were being mis-sold to clients by various financial institutions.
The purpose of Payment protection insurance is to cover repayments on finance such as credit cards, loans, etc. in the event that the borrower is unable to work and make repayments due to sickness, accident, or redundancy. However, the review into Payment protection insurance found that many customers had been sold Payment protection insurance cover that was not suited to them, had been informed that they had to take Payment protection insurance to get finance, or had been sold Ppi along with their finance without even realising it.
As a result of the finding the Financial services authority has been cracking down on firms that are found to be breaching guidelines and regulations in relation to Payment protection insurance sales, and HSBC has become the latest firm to be pulled up and penalised over Ppi. HFC Bank, which is part of HSBC, has been pulled up for shortcoming to provide suitable advice to patrons between January 2005 and May 2007.
As a result of this the Fsa has now imposed the largest fine yet over Ppi, finding HFC £1 million for its shortcomings. Officials from HFC have stated that sales processes relating to Ppi will now be reviewed, and changes will be put into place to ensure that consumers are not disadvantaged.
The Fsa had stated that the bank did not have adequate systems and procedures in place with regards to Ppi sales, and this put customers at increased risk of being mis-sold this type of cover.
An Fsa official stated: “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.”
Tags: ppi compensation, ppi claim