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News Tag: mis-selling

December 10, 2012

Banks still pushing sales despite mis-selling

by Jan Harris
Banks still pushing sales despite mis-selling
Consumer group Which? claims that bank staff are still under pressure to sell products to customers, despite the recent scandals over mis-selling. Mis-selling of Payment Protection Insurance (PPI) has cost banks over £10m in compensation to customers, but bank staff are still being driven by sales targets and incentives to sell products to customers. According to new rules, staff incentives should ...




November 15, 2012

CPP fined by FSA for insurance mis-selling

by Jan Harris
CPP fined by FSA for insurance mis-selling
Card insurer CPP faces the joint-largest mis-selling fine ever imposed by watchdog the Financial Services Authority after it was found to have mis-sold insurance products. As well as the £10.5m fine, the group expects to pay out £14.5m in compensation to both private individuals and businesses who were mis-sold products. The FSA found that CPP’s sales staff were encouraged to ...




October 10, 2012

Barclays follows Co-op in banning sales incentives

by Jan Harris
Barclays follows Co-op in banning sales incentives
Barclays is changing its bonus system for 18,000 branch and call centre staff, following a similar move by the Co-operative bank. Barclays is ending the practice of awarding staff commission for selling financial policies. Like the Co-op, Barclays will now provide bonuses for good customer service rather than for meeting sales targets. Antony Jenkins, who has replaced Bob Diamond as ...




Co-operative Bank bans sales incentives

by Jan Harris
Co-operative Bank bans sales incentives
The Co-operative Bank has banned sales incentives for its branch staff and replaced them with an incentive system which rewards good customer service with bonuses of up to £400 per quarter. Around 3 per cent of branch staff were offered incentives to sell products. The Co-op plans to introduce the new customer service incentive scheme in it call centres next year. It will ...




September 19, 2012

Which? calls for Big Change to bank culture

by Jan Harris
Which? calls for Big Change to bank culture
Consumer watchdog Which? has launched a new campaign calling for banks to put customers first. The ‘Big Change’ campaign will put pressure on the banking sector to focus less on profits and more on the services they offer. Its launch precedes a meeting of the Parliamentary Commission on Banking Standards in December, which will consider proposals for legislative action on ...




May 24, 2012

Bank of England may end free in-credit banking

by Jan Harris
Bank of England may end free in-credit banking
A director of the Bank of England has warned that official intervention could be considered to end the ‘dangerous myth of free in-credit banking’. Andrew Bailey has already spoken out against free banking in relation to the mis-selling of financial products. In a speech made available to media, he reiterated his concern, saying that it will be difficult for banking reforms ...




May 23, 2012

Homeserve faces mis-selling investigation

by Jan Harris
Homeserve faces mis-selling investigation
HomeServe, which provides emergency insurance cover and domestic repairs to households in the UK, is to be investigated by the Financial Services Authority (FSA). Issues over the possible mis-selling of household emergency policies were uncovered last October during an internal review at the Walsall-based company. Homeserve’s call centre staff were found to be selling 'Complete Cover’ policies as an upgrade to existing customers Problems were ...




February 21, 2012

CPP Group fears collapse

by Jan Harris
CPP Group fears collapse
CPP Group Plc, which provides credit card and identity protection, claims that a mis-selling investigation by the Financial Services of Authority (FSA) could put it out of business. The FSA has been reviewing the firm for a year following complaints over the way it sold card protection and identity protection products. The regulator has now ordered the suspension of CPP’s shares and ...




January 6, 2012

Banks and insurers failing victims of PPI mis-selling

by Jan Harris
Banks and insurers failing victims of PPI mis-selling
The Financial Ombudsman Service (FOS) has criticised banks and insurance companies for their slow response to payment protection insurance (PPI) compensation claims. The huge numbers of PPI claims are overwhelming UK banks, with the result that customers are becoming tired of waiting and are taking their cases to the FOS. The FOS says that number of PPI cases on ...




December 14, 2011

Homeserve to outsource complaints operations

by Jan Harris
Homeserve to outsource complaints operations
Home repair company Homeserve has announced plans to outsource its complaints handling operations. It previously handled complaints from its call centre in Walsall, but complaints were found to have been dealt with incorrectly during last winter’s period of severe weather. Homeserve received an unprecedented number of calls and some of its customers were forced to turn to local plumbers to get their ...




December 9, 2011

HSBC extends compensation to more NHFA customers

by Jan Harris
HSBC extends compensation to more NHFA customers
Following the recent revelation that HSBC subsidiary NHFA mis-sold asset-backed investment products to elderly people in care, HSBC has promised to consider complaints dating back to before it took over NHFA in 2005. The decision means that HSBC could face thousands more potential claims for compensation, adding to the £30m compensation bill it already expects to pay. NHFA mis-sold the ...




December 5, 2011

HSBC mis-sold bonds to elderly investors

by Jan Harris
HSBC mis-sold bonds to elderly investors
HSBC subsidiary NHFA, which offered advice on financial provision for people in long-term care, has been fined £10.5m by the Financial Services Authority (FSA). NHFA was found to have mis-sold asset-backed investment products to 87 per cent of 2,485 elderly people or their representatives, who bought the products to fund care costs. The products were sold between 2005 and 2010, to ...




November 22, 2011

Mis-selling scandal costs Homeserve £10 million

by Jan Harris
Mis-Selling scandal costs Homeserve £10 million
Homeserve revealed today that it expects to spend around £10 million on overhauling its sales practices following the recent mis-selling scandal. The decision by repair and insurance group Homeserve to suspend sales activity after problems with its selling practices came to light will also result in significant costs. The reduction in marketing is expected to lead to a 5 per cent fall ...




November 14, 2011

PPI customers may face tax bill

by Jan Harris
PPI customers may face tax bill
Customers who were mis-sold payment protection insurance (PPI) are liable for tax on the compensation they receive. The Financial Services Authority awarded compensation to PPI customers who had been mis-sold policies, plus 8 per cent interest on the money they originally spent on the policy. This interest is subject to tax it has been revealed, potentially earning the government several ...




April 20, 2011

Yorkshire agrees merger with N&P

by Kay Mitchell
’Yorkshire
It has been confirmed that Yorkshire Building Society will merger with smaller rival Norwich and Peterborough (N&P) Building Society. The announcement comes after much consolidation in Britain’s mutual sector, as a result of funding pressures. Meanwhile, the news comes after N&P, which is Britain’s tenth largest society, was fined earlier this week by the Financial Services Authority (FSA) for giving unsuitable advice on its ...




April 18, 2011

N&P fined for mis-selling Keydata products

by Kay Mitchell
N&P fined for mis-selling Keydata products
The Financial Services Authority (FSA) has today announced that it has fined the Norwich and Peterborough Building Society (N&P) £1.4 million for giving unsuitable advice on its Keydata products. The Watchdog said the group failed to properly assess the financial circumstances of many of its customers and often designated them as having a higher tolerance of risk than was appropriate. N&P, which ...




March 20, 2011

Yorkshire Building Society in talks with N&P

by Kay Mitchell
’Yorkshire
It has been revealed that Yorkshire Building Society is in talks with smaller rival Norwich and Peterborough (N&P) which could lead to an acquisition. The announcement comes after much consolidation in Britain’s mutual sector, as a result of funding pressures. Late last year, Coventry Building Society and Stroud & Swindon merged, creating a business with approximately 1.5 million customers and assets of ...




January 20, 2011

Watchdog announces changes for financial advisers

by Kay Mitchell
”Watchdog
Following a review, City watchdog the Financial Services Authority (FSA) has announced financial advisers must hold accreditation if they want to provide independent or restricted advice from the start of 2013. The FSA said retail investment advisers will need to possess a Statement of Professional Standing (SPS) if they want to give independent or restricted advice after this date. The moves are to ...




September 13, 2010

N&P reported to have mis-sold investments

by Kay Mitchell
”N&P
Norwich & Peterborough Building Society has been hit with claims of mis-selling of investments between 2006 and 2009. The building society, which is Britain’s tenth largest, is expected to receive letters tomorrow from solicitors acting on behalf of 250 customers, demanding compensation for investment advice they received in the society’s branches about its Keydata products. The claims have led to calls from ...




October 7, 2008

Record fine for A&L for mis-selling PPI

by Kay Mitchell
”Record
The Financial Services Authority (FSA) has given Alliance & Leicester (A&L) a record fine of £7 million for mis-selling payment protection insurance (PPI). The FSA found that the bank had trained its staff to put pressure on customers who questioned the inclusion of optional PPI in a loan. During the period January 2005 to December 2007, A&L sold around 210,000 ...