The FSA has fined Liverpool Victoria Banking Services (LVBS) £840,000 for failings in the sale of Payment Protection Insurance (PPI) .
LVBS is also required to pay compensation to customers who bought PPI when seeking unsecured loans between 14 April 2005 and 8 August 2007.
The FSA claims that customers who phoned the firm to get an unsecured loan had the cost of PPI added to their quote without having asked for it. Also, LVBS were found to be placing pressure on customers that said they did not want to purchase the PPI.
In addition, customers were given information about the features and limitations of the PPI offered which was insufficient and misleading.
Margret Cole, director of enforcement at the FSA, says: "The LVBS sales process was flawed in its design. The firm has stopped all sales of PPI and is now proposing a comprehensive programme to contact its customers and pay them compensation where appropriate."




