PPI Capital One
In February 2007, Capital One became one of a number of UK lenders fined by the Financial Services Authority (FSA) regarding the sale of payment protection insurance. Payment protection insurance, or PPI, is a type of insurance designed to cover debt repayments if a policyholder is unable to work due to sickness, accident or involuntary unemployment. The policy has been widely sold for almost thirty years and can be attached to loans, mortgages, credit cards, store cards and hire purchase agreements. Payment protection insurance is not a bad product in itself, but it is not suitable for everyone.
In 2006 The FSA first investigated the sale of PPI. The investigation came in response to rising complaints and accusations of mis-sale against lenders. The FSA revealed some significant failings with the way Payment protection insurance (such as PPI Capital One) were being sold. The issues discovered ranged from policies being added without consent to customers being recommended cover unsuitable for their needs. The FSA also highlighted a failure by many lenders to put in place processes to protect customers from mis-sale.
During its investigation into Capital One, the FSA looked at 335,000 sales of credit card PPI between Jaunary 2005 and April 2006. It was found that the lender had failed to issue policy documentation during this period and, as a consequence, has placed customers at risk of purchasing an unsuitable policy.
Since the FSAs investigations, standards surrounding the sale of PPI have improved enormously. Many customers still feel aggrieved; however, that they have been duped into buying a policy they did not want or need or that is unsuitable for them. As a consequence, the amount of customers making a PPI reclaim has increased significantly.
If you think you may be eligible to make a PPI Capital One mis-selling claim call our team on 0207 471 2000.
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