You are here: Home - Insurance - News -

FSA hands out record PPI fine

0
Written by:
17/01/2008

The Financial Services Authority (FSA), has dished out a seven-figure fine to HFC Bank for failing to meet required sales standards.

When examined by the FSA, 76% of the bank’s policies sold to customers were found to be single premium PPI policies for unsecured loans.The FSA issued HFC with a £1.1m fine, a record for PPI.

Payment Protection Insurance (PPI), which is available from a number of independent providers and does not have to be purchased alongside a loan or mortgage, covers any non-mortgage related loan repayments in the event of accident or illness that prevents you from earning.

Shane Craig, managing director of Paymentcare.co.uk, said. “Until the point-of-sale of unsecured loans and PPI are separated, consumers will continue to spend huge sums on protection that is inappropriate and overpriced. The only way borrowers can be sure they are getting what they need at the right price is to take the proactive approach of going to an independent provider rather than allowing themselves to be sold their lender’s own product.

“While appearing to be more bad publicity for what is a genuinely valuable form of consumer protection, the fine imposed on HFC Bank will hopefully be one of the last nails in the coffin of point-of-sale unsecured loan PPI and lead to greater transparency for all concerned.”

Related Posts

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Car owners claim for flood damage

Nearly 11% of all insurance claims resulting from 2007’s flooding were car insurance claims, research from price comparison website Gocompare.com...

Close