Fine for failures over PPI complaints

Fine for failures over PPI complaints
2 June 2016

The company that presides over a group of loan brokers has been fined £2.36 million, thanks to the way it dealt with complaints regarding PPI.

The Financial Conduct Authority (FCA) reported that CT Capital's failures regarding the mis-selling of PPI resulted in some people missing out on compensation.

The FCA said that the average redress payment was nearly £6,000.

After the watchdog intervened, CT Capital reviewed thousands of rejected complaints and changed their process. Of course, this is just the latest in a long line of cock-ups regarding PPI claims.

CT Capital was the parent company of a number of brokers and lenders, known as the CT Group. From January 2005 to October 2008, the CT Group bagged themselves £63 million in commission from PPI selling.

CT Capital were responsible for handling all the resulting complaints on behalf of the CT Group.

Between May 2011 and November 2013, CT Capital didn't properly deal with claims, which meant that some customers missed out on redress payments, which were rightfully theirs.

"Failing to handle complaints appropriately means that firms risk treating customers unfairly for a second time and it is important that firms get this right," said Mark Steward, FCA enforcement director.

"We have taken action against firms on numerous occasions and there is no excuse for firms continuing to get it wrong. We remain determined to ensure that firms put right the harm caused by PPI mis-selling and regain the trust of the public."

If you still have a claim for PPI compensation, you can do it yourself, free of charge. Here's our guide on how to do that.

TOPICS:   How To Guides   Banking

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment