31 January 2007
Further investigations into the mis-selling of payment protection insurance (PPI) policies has led the Financial Services Authority (FSA) to fine one of Britain's biggest retailers a record sum of £610,000.
GE Capital Bank, which supplies store cards for Debenhams, Asda and BHS among others, was found to have mis-led customers on the matter of PPI policies, with investigators stating that the bank did not provide adequate training on the policies for their employees and often didn't provide the customer with enough information on PPIs before selling them.
PPI policies are often recommended to consumers who have taken out secured loans as a way of ensuring that their repayments will be paid to the lender on time, even if the consumer loses their job or becomes too injured to work.
The FSA's director of enforcement, Margaret Cole, told the Guardian that the consumer needed to be made aware that PPI policies are almost always optional and that the FSA would continue its crackdown on lenders which mis-sold the insurance.
"Our focus on PPI will remain very high this year. We are determined to see significantly better practice in PPI sales and will crack down where firms fail to treat their customers fairly," she added.
A statement from GE Capital confirmed that the bank admitted that sometimes customers were not given all the relevant information.
A spokesman said: "GECB fully accepts responsibility for how the policies are sold. It is continuing to take steps to ensure that no customer has lost out financially."
Make sure you know exactly what you're getting when you take out a loan. Compare loans with and without Payment Protection Insurance and read helpful information that will guide you through every step of your application. Applying is quick, easy and free – "http://www.uswitch.com/Loans/Secured-Loans.html">make a personal loan comparison now.
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