Liverpool Victoria fined £840,000 for mis-selling PPI
by Gill Montia
Liverpool Victoria Banking Services (LVBS) has been fined £840,000 by the Financial Services Authority (FSA).
The offshoot of Liverpool Victoria Friendly Society has been found wanting over its sale of Payment Protection Insurance (PPI).
The FSA found LVBS guilty of serious failings because from 2005 to August 2007, it added the cost of PPI to quotes for personal loans, without customers having requested the cover.
The regulator reported that LVBS did not explain that the cost of PPI had been included and that some customers who specifically said they did not want the insurance were then pressurised into buying it.
The FSA dismissed the fact that details of PPI had been included in the documents sent out to clients.
The average cost per customers is around £1,000 and in addition to the fine, LVBS will be repaying interest on PPI premiums to the 14,500 people affected.
It is also promising to make full recompense where appropriate.
The fine is the second-largest to be ordered by the FSA over PPI sales and follows the £1 million penalty handed out to HFC Bank at the beginning of this year.