Reclaim Liverpool Victoria PPI
Liverpool Victoria Banking Services Limited (LVBS) were fined by the Financial Services Aurthority (FSA) for serious failings in the sales of single Payment Protection Insurance (PPI) between January 2005 and August 2007. 60% of 97 sales calls that were reviewed by the FSA were revealed to be non-compliant. These policies averaged a price of £1,600
Penalty given: £840,000
Reasons for this penalty:
- Failing to treat their customers fairly and with due regard
- Failure in taking care when organising and controlling their affairs
- Lack of adequate risk management systems
- Failure in making information that was given to customers fair, clear and easy to understand
- Failing to explain costs of PPI to customers
- Adding PPI costs to customers quotations without it being asked for
- Using forceful sales techniques on customers who refused PPI
- Failing to provide adequate information to customers in regards to PPI limitation, features and exclusions
- Often providing information which was unfair and misleading
What the FSA said:
“When customers phone for a quote, it is totally unacceptable for firms to add on the cost of insurance which the customer has not asked for. Many customers make their decisions when speaking to sales staff. If those conversations are unclear or misleading it will be no defence for firms to say that full details were included in paperwork which customers received later. We have made it abundantly clear that firms must ensure their PPI sales processes are up to the required standards and must change their behaviour where necessary.
The LVBS sales process was flawed in its design. The firm has stopped all sales of PPI and is now proposing a comprehensive programme to contact its customers and pay them compensation where appropriate. The FSA expects firms to treat customers fairly, particularly when failings have been identified. This proposal for remedial action sets an example for other firms to follow.”
Fill out the form below to make a claim...
