Norfolk-based CT Capital, which also parents a group of lenders, handled 6,669 PPI complaints between May 2011 and November 2013 but some customers wrongly missed out on redress payments.
The parent of mortgage broker Commercial Trust has been fined £2.4m for “serious failings” in handling payment protection insurance complaints.
Norfolk-based CT Capital, which also parents a group of lenders, handled 6,669 PPI complaints between May 2011 and November 2013 but some customers wrongly missed out on redress payments.
Between 2005 and 2008 CT Capital sold 31,591 regulated PPI policies, receiving approximately £63m net in commission in the process.
Being correctly redressed would have had a “potentially significant” impact on individuals, the FCA said, since the typical upheld complaint was nearly £6,000.
Mark Steward, director of enforcement and market oversight at the FCA, said: “Failing to handle complaints appropriately means that firms risk treating customers unfairly for a second time and it’s important that firms get this right.
“We have taken action against firms on numerous occasions and there’s 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. We will continue to monitor how firms are dealing with complaints and will not hesitate to take action where we see firms not complying with their obligations.”
The FCA ruled that CT Capital failed to put the necessary PPI redress processes in place until November 2011 despite being aware of the rules in December 2010.
It also operated with flawed policies by failing to give its complaint handlers sufficient guidance.
CT Capital redeveloped its PPI complaint handling process in 2013 following feedback by the FCA.
The company qualified for a discount by settling early on the fine, which would have been £3m.
