Huge fine for A&L over PPI

According to recent reports the lender Alliance and Leicester has received a record fine over the mis-selling of PPI or Payment Protection Insurance. The UK’s financial regulator, the Financial Services Authority, has fined the lender £7 million as a result of mis-selling PPI over a period of three years. This comes as part of an ongoing crackdown by authorities over mis-selling of the cover.

The FSA claims that staff members were trained to put pressure on customers to take out PPI, and in some cases the cover was not appropriate and not wanted by the consumer. A&L has apparently apologised over this and has promised to pay back affected customers.

An official from the FSA said: “The failings at A&L are the most serious we have found. This is reflected in the record PPI fine.” An official from consumer group Which? said: “Now the fine has been set, we want everyone who was mis-sold to get their money back. This can be done by ensuring that any communications to consumers are clear and straightforward about their rights.”

An A& L spokesman said: “I apologise sincerely for our shortcomings. Customers can be assured that we are taking this matter very seriously and that we have reviewed and tightened up our processes from December 2007 to ensure that all customers get the right information and advice.”