Reclaim Loans.co.uk PPI
Loans.co.uk Limited (LCUK) were fined by the Financial Services Aurthority (FSA) for failing to treat their customers fairly when selling Payment Protection Insurance (PPI) between January 2005 and November 2005 exposing approximately 14,000 customers to the risk of being mis-sold PPI.
Penalty given: £455,000
Reasons for this penalty:
- Failure to take responsibly care organising and controlling their affairs
- Failing to treat their customers fairly and with due regard to their needs
- Failing to gather and record sufficient information to prove their recommended policies were suitable
- Failures in providing customers with sufficient policy information in order to make a decision
- Lack of adequate processes to ensure suitable recommendations were made
- Failing to inform customers of the cost of PPI
- Failing to inform customers they wouldn’t be able to claim on certain parts of their policy
- Lack of adequte monitoring systems to ensure advisers followed the scripted process
- Failing to provide customers with information regarding policy benefits, exclusions and limitations
What the FSA said:
“We have highlighted Payment Protection Insurance as an FSA priority due to the potential level of risk to consumers. Loans.co.uk Limited failed to make sure adequate processes were in place to ensure the suitability of its PPI recommendations and treat its customers fairly. The principle of Treating Customers Fairly should be embedded in firms’ business models to help prevent such failings and it is important that all firms review their systems and controls to reach this standard.
“PPI can provide valuable protection against changes in personal circumstances but customers should come away from the sale having been given the best possible information to understand that the PPI is optional, what the policy will and will not cover and how much it costs. We encourage consumers to ask straightforward questions of sales staff when PPI is mentioned to help them to identify whether the product is right for them.”