timberland men s shoes HSBC unit fined record for PPI failings

timberland fashion boots HSBC unit fined record for PPI failings

The regulator said today that between January 2005 and May 2007, HFC sold PPI with 75pc of the loans that it provided exposing around 163,000 customers to the risk of buying PPI which was unsuitable for their needs.The FSA said HFC’s 136 branches failed to gather enough information about its customers, and therefore may have been unable to tell if a customer actually needed PPI, which is designed to help borrowers keep up with payments on loans, credit cards or mortgages, in the event of accident, sickness or unemployment.Most PPI products are sold alongside a specific loan, such as a mortgage. The FSA has long been warning that many people do not realise that PPI is optional and can be bought as a stand alone product.The majority of HFC’s customers, according to the FSA, had limited access to consumer finance deals due to their credit rating. A spokesman for HFC said: “Our typical customer is near prime which has a subtle difference from sub prime. Sometimes they find it harder to get loans from the bigger high street banks due to changes in their circumstances or their level of debt.”Among various financial products,
timberland men s shoes HSBC unit fined record for PPI failings
HFC offers ‘buy now, pay later’ deals to the customers of retailers across the UK, including Currys, Dixons, B Furniture Village and PC World. HFC gains a third of its customers half a million borrowers through its retail division.The FSA fined the group almost double the amount of its previous record PPI fine.Margaret Cole, FSA director of enforcement, said: “We are determined to see much better practice in the PPI market. We announced in September that we would be imposing higher fines fro serious failings in the retail market including against firms who fall short in relation to PPI.”The fine against HFC the biggest PPI fine to date is evidence of our determination in this area. HFC’s failings put its customers at risk of buying unsuitable protection insurance and the financial impact on them of unsuitable advice was likely to be significant.”By agreeing to settle the matter with the FSA at an early stage, HFC qualified for a 30pc discount, reducing the fine from 1.55m to 1.09m.During the period under scrutiny, HFC traded under the names Household Bank and Beneficial Finances. The group became part of HSBC Group in March 2003.The HFC spokesman said: “It is disappointing that in certain respects our procedures have been found to fall below the standards expected by the FSA and which we set ourselves.”A programme of improvements to HFC Bank’s procedures is already well under way in order to ensure that the issues identified by the FSA have been addressed and, moreover,
timberland men s shoes HSBC unit fined record for PPI failings
work is underway to ensure that customers have not been disadvantaged.”