FSA has levied its biggest PPI fine, of over £7 million. It found Alliance & Leicester plc had breached Principles 3, 6, 7 and 9 when it sold over 200,000 customers PPI using its telephone sales teams, where:
- customers did not know the cost of the cover;
- the firm did not find out what customers wanted; and
- the firm did not make it clear PPI was optional and sales staff put pressure on customers to buy it.
Margaret Cole said these were the worst failings yet, which was reflected in the amount of the fine. See our separate newsflash for more information.