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The Financial Services Authority (FSA) has, for the first time, fined a mortgage
broker for mis-selling payment protection insurance (PPI).
The Authority fined Bournemouth-based Regency Mortgage Corporation £56,000 for
selling the policies to consumers who did not need them or on which they would
no chance of making a successful claim.
A higher fine of £80,000 would have been levied had Regency not settled at an
early stage of the FSA's investigation.
Last year the FSA found that a third of firms it surveyed were mis-selling this
type of insurance.
As a result, he OFT launched a formal investigation into the sale of PPI in
April.
Clive Briault of the FSA stated: "We have highlighted payment protection
insurance as an area of high potential risk to consumers"
"Regency Mortgage Corporation exposed its customers to an unacceptable level of
risk."
Source:
Getting Paid
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