News In Focus
16 February 2007
£175,000 mis-selling fine for bank
The Financial Services Authority has fined another bank for its mis-selling of payment protection insurance.
Capital One Bank Europe has found itrself with a £175,000 fine for add-on sales with credit cards. GE Capital Bank was fined more than £600,000 two weeks ago for a similar offence.
The FSA said that from January 2005 until April 2006, Capital One did not ensure that 50,000 of its customers received sufficient information about the polices they bought, meaning that they were not in a position to decide if such policies were right for them.
Since April, the bank has attempted to remedy the situation by compensating customers who did not receive policy documents. This co-operation means the bank is entitled to a 30% discount on the fine.
Margaret Cole, the FSA's director of enforcement, said targeting payment protection insurance policies remained a priority for the FSA and that the authority would continue to crack down on mis-selling.