Egg Fined £721,000 over PPI

LONDON - The UK's Financial Services Authority (FSA) has fined UK credit card firm Egg £721,000 for serious failings in the sale of credit card payment protection insurance (PPI).

The regulator found failings in around 40% of telephone sales of PPI by Egg between January 2005 and December 2007. Egg sold PPI to customers when receiving customer services calls or to new customers, telling staff to use techniques called 'objection handling' to persuade customers to take the insurance when they said they did not want to take out PPI. The regulator said these techniques over-estimated the positives of PPI and in some cases the insurance was applied to bills even when customers requested no such protection.

The company will be expected to write to customers, asking them to call a helpline with concerns and to compensate where appropriate - paying £1.67 million for every 10% of customers receiving a refund.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here