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GECB fined over PPI

January 30, 2007 by admin  
Filed under News, News-Insurance

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GE Capital Bank (GECB) has been fined by the Financial Services Authority (FSA) for failing to have adequate systems and controls in place for selling insurance.

The bank was hit with a £610,000 fine following an investigation into (PPI) by the FSA.

GECB works in providing credit finance through store cards, credit cards and sales finance. The firm has been found guilty of treating customers unfairly.

“Millions of people take out store cards every year,” said Margaret Cole, director of enforcement at the FSA.

“They need to know that PPI is almost always optional and should consider whether they need it before signing up.”

GECB has been punished for failing to provide adequate information to consumers regarding PPI and failing to retrain staff after it was highlighted that they were not complying with sales procedures.

The FSA has warned that GECB will not be the last firm to come under scrutiny regarding PPI.

“Our focus on Payment Protection Insurance will remain very high this year,” warned Ms Cole.

“We are determined to see significantly better practice in PPI sales and will crack down where firms fail to treat their customers fairly.”

GECB has committed to taking action to redress the highlighted issues, which resulted in the fine being reduced from £870,000.

Tags: consumers regarding ppi, Insurance, sales procedures.the fsa, finance, payment protection insurance

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