FSA fines loans company over PPI
October 27, 2006
The Financial Services Authority (FSA) has fined Loans.co.uk £455,000 for mis-selling Payment Protection Insurance (PPI).
PPI covers monthly repayments on credit card borrowing and unsecured loans in case of accident or unemployment.
The loans sales website failed to establish proper systems to prevent mis-sale of the insurance product to customers, the regulatory body found.
The FSA also ruled Loans.co.uk had not recorded enough information to demonstrate that the policy recommendations it made were appropriate for individual customers.
Simon Burgess, managing director of independent protection insurance provider Britishinsurance.com, said the move shows misrepresentation and mis-sale will no longer be tolerated.
"Action is finally being taken against firms that are failing to treat their customers fairly over PPI," he said.
"Hitting commercial firms in the wallet is the most effective way to make them sit up and take notice."
An Office of Fair Trading (OFT) market study launched in April found that "many consumers are failed by PPI – insurance which gives them a poor deal and often less protection than they think".
Last week the OFT asked the Competition Commission to investigate the PPI industry.
Written by Peter Kenny · Filed Under News Loans
Can anyone help Please
We have been trying to complain about our PPI on our loan, and no one will help us.
We have tried talking to loans.co.uk, but no one will listen. We have written to them and the FLA only to be told that they arent members so the FLA cant help. How do i find out who is the regulatory body for loans.co.uk, i have been thru all my paperwork and cant find it any where. We have managed to find enough money to pay off our loan, only to find out that after nearly 4 years, we still owe more than we started with…. and that we didnt need the ppi but they wouldnt let us take the loan without it, even though we both have jobs that pay sickness, etc… i just dont know where to go next.