Reclaim Hadenglen Home Finance Plc PPI
Hadenglen Home Finance Plc and its chief executive Richard Hayes were fined by the Financial Services Aurthority (FSA) for failings in their controlling and management of Payment Protection Insurance (PPI) sales between January 2005 and November 2006 exposing approximately 1,900 customers to unsuitable policies.
Penalty given: Hadenglen £133,000 Richard Hayes £49,000
Reasons for this penalty:
- Failing to have adequate systems
- Lack of appropriate controls
- Failures in staff training
- Lack of sales monitoring
- Failures in treating customers fairly and with due regard
- Failing to gather adequate customer information resulting in unsuitable policy recommendations being made
- Failures in taking PPI costs into account when making recommendations
- Recommending policies which didn’t suit their customers needs
- Failures in providing policies which their customers were actually eligable for
What the FSA said:
“Firms must develop and maintain systems and controls that minimise the risk of providing unsuitable advice to customers. The penalty imposed on Mr Hayes should leave senior management within firms in no doubt that the FSA will hold them to account if they fail to treat their customers fairly.
“PPI has been a priority for the FSA since general insurance regulation began and it continues to be a priority for us. This is the first time we have taken action against a chief executive for PPI selling failures. The significant fines imposed on both Hadenglen and Mr Hayes reflect the seriousness of their actions.”
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