Egg PPI sales techniques "inappropriate", says FSA

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www.moneynews.co.uk > Credit cards > Egg PPI sales techniques "inappropriate", says FSA

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Egg PPI sales techniques "inappropriate", says FSA

Egg has been fined £721,000 after the Financial Services Authority (FSA) said it used "inappropriate" methods to sell payments protection insurance (PPI) with its credit cards.

The FSA said that it discovered failings in 40 per cent of Egg's telephone sales of credit card PPI over a period of nearly three years.

It found that when Egg customers said they did not want PPI with their credit card, the company's used 'objection handling' techniques to persuade them otherwise.

According to the FSA, the techniques included over-emphasising the positive features of the PPI and in some cases where the customer said they did not want it, applying it to the credit card anyway.

The FSA's director of enforcement Margaret Cole said: "All firms must ensure that customers are treated fairly when selling PPI and if a customer does not want PPI, they should not be pressured into taking it."

She added that it was "unacceptable" that Egg had not detected the failings.

Earlier this month the government announced plans to make the banking code of conduct legally binding, which would give the FSA powers to impose potentially unlimited fines on banks found to be trading unfairly.

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