The FSA fined Capital One £175,000 after it revealed that the organisation did not have adequate systems and controls in place. The regulator also indicated that the bank had failed to treat its customers fairly.
Between January 2005, and April 2006, the FSA reported that the bank had failed to ensure that 50,000 of its customers received information regarding its policies. The study also revealed failings in Capital One’s compliance monitoring of telephone sales of PPI and that two of the four scripts used by its sales associates did not ask the customer for explicit consent to receive only limited information over the telephone.
Margaret Cole, director of enforcement at the FSA, said: “We are determined to see better practice in PPI. This fine and other recent PPI-related enforcements show we will crack down where firms fail to treat their customers fairly in this area.”
Sanjiv Yajnik, chief executive officer of Capital One Bank Europe plc, said: “We consistently review our policies and practices and had made a number of significant improvements prior to the FSA’s investigation.”
Shane Craig, managing director at Paymentcare, said: “It’s encouraging to see the regulator taking such action.”
