FSA issues fine for PPI mis-selling
The Financial Services Authority (FSA) has fined HFC Bank nearly £1.1m for failing to take reasonable care to ensure that the advice it gave customers to buy payment protection insurance (PPI) was suitable, and for failing to have adequate systems and controls for the sale of PPI.
According to the FSA, from January 2005 to May 2007, HFC's procedures did not require advisers in its branch network to gather sufficient information about customers' circumstances and take sufficient information into account when considering whether PPI was suitable.
HFC also did not require advisers to explain fully why they recommended a particular policy or identify to customers any demands and needs which the policy would not meet. These and other failings meant that HFC put its customers
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