HFC Bank fined £1.085 million for PPI breach
The Financial Services Authority (FSA) has fined HFC Bank £1.085 million for exposing 160,000 customers to potential mis-selling of payment protection insurance (PPI).
The fine is the largest so far made by the regulator in connection with PPI.
HFC is part of the HSBC group and trades under the Household Bank and Beneficial Financial brands, through its 136 branches.
Between January 2005 and May 2007, the bank sold 163,000 PPI policies but did not keep adequate records.
Staff failed to gather sufficient information from consumers buying PPI, thereby creating a situation where the cover sold may not be suitable and claims could be rejected.
The FSA’s director of enforcement, Margaret Cole, stated: “We announced in September that we would be imposing higher fines for serious failings in the retail market including against firms who fall short in relation to PPI. The fine against HFC – the biggest PPI fine to date and first since our September announcement – is evidence of our determination in this area. HFC’s failings put its customers at risk of buying unsuitable protection insurance and the financial impact on them of unsuitable advice was likely to be significant.”
Category: Companies News, Health Insurance News
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