The issue of mis-selling has again reared its ugly head after the FSA handed out its heaviest-ever fine for the sale of payment protection insurance (PPI).
The regulator today announced it has fined HFC Bank £1,085,000 for failing to give “suitable” advice on PPI, and for having inadequate systems and controls for the sale of the insurance. It says that, between January 2005 and May 2007, the advisers at the bank, which has 136 branches countrywide, were recommending PPI to customers regardless of its suitability. It says the bank did not require advisers to fully explain why they recommended a particular policy or demonstrate to customers what the policy did or did not cover. It is the fifth PPI-related fine meted out by the FSA, with the ...
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