Internet bank Egg has been fined £721,000 by the The Financial Services Authority (FSA) for serious failings in its sales of credit card payment protection insurance (PPI) .
The firm says it will contact every customer to whom it sold the insurance and has calculated a £1.67m payout for every 10 per cent who are eligible for a refund. However, the regulator says it is unlikely every customer will qualify for a payout.
The FSA says Egg sold PPI either when receiving a customer services call or when making a sales call to a new customer, but when customers refused the insurance the firm encouraged its sales staff to use techniques, called ‘objection handling', to persuade the customer to take the insurance. FSA director of enforcement Margaret Cole said: "Egg used inappropriate sales techniques to try to persuade customers to buy PPI on their credit card even when they asserted they did not want the cover."
Egg fined over PPI failings
Financial Services > Income lnsurance > News
Egg fined over PPI failings
Fri, 12 Dec 2008
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