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November 7, 2015 
Daniel Lee In February 2007, the Financial Services Authority fined Capital One Bank £175,000 for failing to have adequate systems and controls for selling Payment Protection Insurance (PPI) insurance and for failing to treat its customers fairly.
From January 2005 to April 2006, Capital One failed to ensure that 50,000 customers received important information about the policy including all exclusions although they did receive a policy summary. Affected customers were unable to check what they were covered for or if the policy was right for them.
Capital One’s main business is providing credit cards, loans, and savings account. It also sold PPI on a non-advised basis to its credit card and loan customers over the telephone, internet or during the card application process. The FSA’s investigation focussed purely on credit card PPI sales. During 2005 Capital One sold approximately 335,000 UK credit card PPI policies.
The FSA found that as a result of its inadequate systems and controls:
Capital One PPI
November 7, 2015 Daniel Lee The head of LLOYDS‘ high street banking empire is being axed as she carries the can for their dire record on customer service. Sources last night claimed Helen Weir will be pushed out as new chief executive tries desperately to rebuild Lloyds TSB’s image.
Following Lloyds’ takeover of HALIFAX BANK OF SCOTLAND the group’s high street retail arm now dominates the market for savings accounts, credit cards and mortgages.
Lloyds revealed in February 2011 that it was still receiving 1,800 complaints a day. Most are about Payment Protection Insurance (PPI) and the Treasury Select Committee announced it would probe the industry-wide misselling of PPI.
Lloyds customer service
November 7, 2015 Daniel Lee In the first half of 2010, according to FSA figures, the proportion of pure banking complaints decided by banks in-house in the consumer’s favour varied from 7% at Bank of Scotland and Clydesdale to 12% at Lloyds TSB, 16% at Nationwide, 19% at Santander, and 27% at RBS.
The latest FOS figures show the flipside of some banks’ approach to complaints handing. Across all types of complaint, the ombudsman upheld 74% of complaints about Lloyds TSB and 73% about Clydesdale. Also above the average of 53% in the consumer’s favour were Co-operative Bank and RBS, where the FOS backed 60% of customers. At Bank of Scotland it was 45%, Santander 39%, HSBC 27%, and Nationwide 25%.
FCA 2010 complaints
November 7, 2015 Daniel Lee Alliance & Leicester Plc, the U.K. lender (taken over by Banco Santander), paid a record 7 million-pound fine for improperly selling payment-protection insurance. Alliance & Leicester failed to tell customers the real cost of PPI insurance, which is sold to cover loan payments in case of illness or unemployment, the Financial Services Authority said in a statement. It’s the FSA’s biggest fine over PPI sales.
The Competition Commission found that banks and retailers overcharge by as much as £1.4 billion a year because consumers aren’t advised they can choose other providers. Alliance & Leicester sold 210,000 PPI policies between January 2005 and December 2007 at an average cost of 1,265 pounds, according to the FSA. The company didn’t explain during telephone sales that PPI was optional and pressured customers who questioned its inclusion with the loan, the FSA said.
Alliance & Leicester fined
