The Financial Services Authority (FSA) has fined credit card provider Capital One £175,000.
Customers had been treated unfairly and were misinformed when being sold payment protection insurance, the watchdog ruled.
A key factor was Capital One’s failure to provide approximately 50,000 customers with important information between January 2005 and April 2006.
The FSA concluded that adequate systems and controls were absent from the sales process.
However, Capital One has been allowed to negotiate a 30 per cent discount in their fine by agreeing to an early settlement.
FSA director of enforcement Margaret Cole today said the body was committed to driving “much better practice” in the PPI industry.
Commenting after the decision Sanjiv Yajnik, chief executive Capital One, said: “We consistently review our policies and practices and had made a number of significant improvements prior to the FSA’s investigation.”
The credit card provider has agreed to compensate wronged consumers, with the final repayments expected to total around £3 million.
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