07 October 2008

Alliance and Leicester Fined £7M for PPI Mis-selling

The FSA announced that has fined Alliance & Leicester Bank (A&L) £7m for serious failings in its telephone sales of payment protection insurance (PPI).

The regulator said that between Jan 05 to Dec 07, A&L sold approximately 210,000 PPI policies to customers seeking a personal loan at an average price of £1,265, however there was a general failure by advisers to give customers details of the cost of PPI.

Also, A&L sought to find reasons to sell PPI without considering customers needs. The FSA said A&L did not make it sufficiently clear that PPI was optional and had a culture of training staff to put pressure on customers where they queried the inclusion of PPI in their quotation or challenged advisers' recommendations.

A&L has agreed to implement a substantial and comprehensive customer contact programme, overseen by by a third party. It will write to all customers who took out policies by telephone in conjunction with an unsecured loan between 14 January 2005 and 31 December 2007 prompting them to review their policy against product information sent to them. It will also review any relevant rejected complaints and claims and has committed to pay redress where appropriate. This remedial action has been taken into account by the FSA and has reduced the level of penalty which would otherwise have been imposed on the firm.

Many operators in the financial services market have failings and considerable shortcomings in their sales processes. It is disappointing that after the Pensions mis-selling scandal, the endowment mis-selling and the various investment products mi-sold over the years and even with regulation there is considerable problems.

In a previous posting I stated that there is a unique opportunity for motivated individuals to start their own profitable and No Risk business with No capital outlay. An opportunity exists to assist individuals who have a potential mis-sold financial product to obtain recompense and as stated it is a good business opportunity to establish a Financial Claims Management business specialising in Financial Services.

For further information and to have a initial confidential discussion contact me on info@easy4life.com
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