Capital One agrees to PPI fine
February 15, 2007 by admin
Filed under News, News-Insurance
credit card company Capital One has agreed to pay a fine to the Financial Services Authority (FSA) over its sale of payment protection insurance (PPI).
The firm has reached a settlement with the authority following its investigation into the whole PPI market.
Capital One says that it has been working proactively with the FSA to ensure that its sales and administration in relation to PPI is brought up to standard.
The card company admits that there were problems in the past but says that it has now rectified these and was able to reach a settlement with the FSA because of the work it had put into addressing the authority’s concerns.
“Capital One values its relationship with its four million customers,” said Sanjiv Yajnik, chief executive officer at Capital One.
“We consistently review our policies and practices and had made a number of significant improvements prior to the FSA’s investigation.
“The FSA has recognised that Capital One co-operated fully throughout the investigation,” he added.
The firm agreed to a fine of £175,000 and it follows the announcement by the Office of Fair Trading earlier this month that the PPI market will be referred to the Competition Commission for further investigation.
If you are considering taking out PPI on any money you are borrowing it is worth while shopping around for the best deal that suits your needs.
