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Home Page | News | FSA fines Alliance & Leicester £7million

FSA fines Alliance & Leicester £7million

Posted on Monday, 05 January 2009 12:00PM by

The Financial Services Authority (FSA) has fined Alliance & Leicester Plc (A&L) £7 million for serious failings in its telephone sales of payment protection insurance (PPI).

The following extract is from the FSA website and details the latest in a long line of companies fined because of the way the sold PPI.

For three years from January 2005 to December 2007 A&L sold approximately 210,000 PPI policies to customers seeking a personal loan at an average price of £1,265, but there was a general failure by advisers to give customers details of the cost of PPI. In addition A&L sought to find reasons to sell PPI without properly considering what customers needed.

A&L did not make it sufficiently clear that PPI was optional and it trained its staff to put pressure on customers where they queried the inclusion of PPI in their quotation or challenged advisers’ recommendations.

These failings resulted in unacceptable levels of non-compliant sales and a high risk of unsuitable sales over the three year period.

(From www.fsa.gov.uk. Click here for the full story)

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