From pensions to PPI, Sam Dunn reviews some rogue practices in the financial service sector’s hall of shame Fat profits first, customers second. Or how about slavering execs willing to flog their own grandmother for a commission? Cliches abound about the UK’s financial advice industry for a reason: they’re grounded in an all-too-familiar reality that has left hundreds of thousands of consumers …

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Despite banks being hit with huge fines (the latest being the Alliance and Leicester) the mis selling of payment protection insurance (PPI) - also known as PPP, continues to occur, according to a recent mystery shopper study carried out by the FSA.

The study revealed that customers are still being mis-sold - they are not informed correctly about the interest that the PPI would attract.

In the current financial climate, one would think that the banks might be acting more responsibly, but it would appear that this is not the case.

Recent Fines for misselling include:

Alliance & Leicester:Fined £7,000,000 in October 2008

Liverpool Victoria: Fined £840,000 in July 2008 Info: Liverpool Victoria

Land of Leather Ltd: Fined £210,000 in May 2008 Info: Land of Leather

HFC Bank: Fined £1,085,000 in Jan 2008 Info: HFC Bank

Hadenglen HF Plc: Fined £133,000 in Sep 2007 Info: Hadenglen Home Finance Plc

Capital One: Fined £175,000 in Feb 2007 Info: Capital One

GE Capital Bank Ltd: Fined £610,000 in Jan 2007 Info: GE Capital Bank Ltd

Loans.co.uk: Fined £455,000 in Oct 2006 Info: Loans.co.uk

Redcats: Fined £270,000 in Dec 2006 Info: Redcats

Regency Mortgage Corporation: Fined £56,000 in Dec 2006

Find out more here.

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The FSA has fined Alliance & Leicester (A&L) £7m for serious failings in its telephone sales of payment protection insurance (PPI).

The regulator said that from January 2005 to December 2007 A&L sold approximately 210,000 PPI policies to customers seeking a personal loan at an average price of £1,265, but there was a general failure by advisers to give customers details of the cost of PPI. In addition A&L sought to find reasons to sell PPI without properly considering what customers needed.

Read more here

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A consumer group has called on the City watchdog to take action to ensure that all people mis-sold controversial payment protection insurance are compensated.

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Be very careful when choosing a personal loan, because this rip-off will bump up your repayments by 20% or more!

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The Competition Commission’s investigation into PPI has not had a negative effect on MPPI sales, according to a survey by The Mortgage Alliance. …

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The Financial Services Authority (FSA) has fined Liverpool Victoria Banking Services Limited (LVBS) £840,000 for serious failings in the sale of single premium Payment Protection Insurance (PPI). The penalty was imposed for failings in relation to PPI offered to customers who telephoned LVBS seeking unsecured personal loans between 14 January 2005 and 8 August 2007.

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Liverpool Victoria, the UK’s largest friendly society, was fined £840,000 and ordered to pay millions of pounds in compensation yesterday for breaching regulations during its sale of almost 15,000 payment protection insurance policies between 2005 and 2007.

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Liverpool Victoria Banking Services has been fined £840,000 over “serious failings” in the way it sold controversial payment protection insurance, the City watchdog said.

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Liverpool Victoria has received the UK’s second largest fine ever for mis-selling payment protection insurance (PPI). The insurer has been ordered to pay £840,000 after being pursued by the Financial Services Authority (FSA) for “serious failings” in PPI sales.

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