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Top 10 Lenders Fined For Mis-Sold PPI and Mortgages

The Financial Services Authority (FSA) has fined numerous banks and financial lenders for the mis-selling of PPI. A some of the main culprits tend to be more familiar than you could like.

Alliance & Leicester were fined £7million largely due to the undeniable fact that telephone sales staff had didn't make it clear that insurance is optional. Staff training tactics include karma top build aggressive sales techniques aimed to place pressure on the customers who questioned PPI.

The business has apologised and also promised to pay back any customers who have lost out through PPI mis-selling. Customers can rest assured that the lender is taking this matter very seriously.

Egg, a large charge card company, has already been fined £721,000 by the Financial Services Authority as a result of serious failings in approximately 40% of their telephone sales to customers. Cases have been reported were PPI was included with customers'charge cards even without their consent. For those customers who turned down PPI, these were met with sales staff using'objection handling'techniques taught in training sessions including over-emphasising the advantages of PPI or advising them that they may cancel at a later date if they decided they did not want it. Egg probably will pay out a substantial number of compensation that will be estimated to total around £1.67million for each 10% of customers who get a refund consequently of inappropriate sales techniques. Capital One can also be a major charge card provider and in 2007 these were fined £175,000 for the mis-selling of PPI. The FSA has said that Capital One have failed to provide'adequate systems and controls'when they sold the insurance product.

GE Capital Bank was also fined £610,000 for exactly the same reasons and also for failing to deal with their customers fairly.

Liverpool Victoria Banking Services (LVBS) were fined £840,000 plus compensation for unclear and misleading sales practices relating to PPI. The FSA found over 60% of 97 sales calls to be non-compliant as the cost of PPI was included with agreements without the client seeking it, consenting to it or even knowing about it. When Max credit score reviewing the calls, the FSA discovered that, if a customer stated which they did not want or want to purchase the insurance and objected to the sale, LVS representatives would pressure them into accepting the product. LVS may also be under investigation for mis sold mortgages. A lot more disturbing, the cost of the premium was included with the loan and so customers had to pay additional interest on the unwanted product too.

HFC Bank were fined £1,085,000 for failing to take reasonable care to make sure that the advice provided to customers when purchasing PPI was suitable, and for failing to possess adequate systems and controls in spot to monitor the sale of PPI and the AA has been branded the business to offer the most expensive PPI policies by the Times online.

Blackhorse may also be amongst the listing of lenders being accused of mis-selling PPI with the main allegation against them being that the interest rate they agreed to customers who chose to obtain PPI was significantly less than the interest rate for a passing fancy loan amount for folks who didn't want PPI. Three firms: Regency, Loans.co.uk and the Home Shopping firm Redcats have already been handed fines for mis sold mortgages and selling payment protection insurance to customers that could not have needed it. Redcats were fined £270,000.

It's strongly advised that whoever has a loan, charge card or mortgage should check their agreement to spot whether they've a Payment Protection Insurance policy. If this is the case and you think it may have been mis sold to you, then you should consider building a complaint.