27 October 2006
The Financial Services Authority (FSA) has fined Loans.co.uk £455,000 for failing to care for its customers’ interests when selling payment protection insurance (PPI).
The internet loan sales company was found to be negligent for not giving out sufficient information to help customers make an informed choice on whether Loans.co.uk’s PPI policies were best suited to them.
Loans.co.uk was also found to be neglecting its duties by failing to collect enough information from clients at the point of sale of PPI to ensure it was applicable to their situation.
“We have highlighted PPI as an FSA priority due to the potential level of risk to consumers,” said Margaret Cole, FSA director of enforcement.
“Loans.co.uk Limited failed to make sure adequate processes were in place to ensure the suitability of its PPI recommendations and treat its customers fairly.”
The news is a blow to the company, which is currently undertaking an aggressive drive to gain national recognition through campaigns such as the shirt sponsorship of a number of football clubs, mostly notably Premiership team Watford FC.