Egg faces £17m compensation payout over PPI failings

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Internet bank Egg faces a £17m compensation payout after it was found to have serious failings in its sales of credit card payment protection insurance (PPI).

The firm, also fined £721,000 by the FSA, says it will contact every customer to whom it sold the insurance and has calculated a £1.67m payout for every 10% eligible for compensation. The regulator, however, says it is unlikely every customer will qualify for a payout. Egg sold more than 106,000 credit card PPI policies at an average cost of £156 between January 2005 and December 2007 and was found to have failings in about 40% of them. The FSA says it sold PPI either when receiving a customer services call or when making a sales call and, when customers refused the insurance, encourage...

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