Reclaim Capital One PPI
Capital One Bank (Europe) Plc (Capital One) were fined by the Financial Services Aurthority (FSA) for failing to treat their customers fairly and failing to have adequate systems and controls for selling UK credit card Payment Protection Insurance (PPI) between January 2005 and April 2006. During 2005 alone Capital One had sold around 335,000 credit card PPI policies.
Penalty given: £175,000
Reasons for this penalty:
- Failing to ensure 50,000 of their customers received crucial information about their policy including exclusions, limitations and benefits
- Failing to have adequte systems and controls
- Phone scripts which failed to provide adequate information regarding PPI policy features and benefits
- Failing to provide telephone sales customers with policy documents prior to the conclusion of the contract
- Unadequate monitoring for telephone sales of PPI
- Failings in treat customers fairly and with due regard to their needs
- Failing to take care when organising their affairs
- Lack of effect risk management systems
- Failings in asking customers consent before applying PPI to their loans or credit cards
- Lack of adequate monitoring for telephone sales
What the FSA said:
“We are determined to see much better practice in PPI. This fine and other recent PPI-related enforcement cases show we will crack down where firms fail to treat their customers fairly in this area. It is unacceptable for people to be put at risk of buying unsuitable protection insurance through not being given the right information at the right time. And consumers should also remember that PPI on credit cards and loans is almost always optional and consider whether they need it before signing up.”
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