The Financial Services Authority has fined Regency Mortgage Corporation Limited £56,000 for failures in its sale of mortgage-related payment protection insurance (PPI) in the sub-prime market.
It is the first time the FSA has taken action against a firm for its sales of PPI since the regulation of general insurance started in January 2005. The regulator says Regency did not treat its customers fairly and failed to organise and control its business effectively. In particular, it did not collect sufficient information during a PPI sale to ensure its recommendations met customers' demands and needs, and in several cases customers were sold a policy for which they already had cover or were unable to claim on. In addition, Regency's procedures for compliance and record-keepin...
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