Fines for insurance broker

The Financial Services Authority, the powerful regulator of the financial services industry, has taken action against a loan broker over the sale of Payment Protection Insurance (PPI) policies .

Apparently, the FSA have levied a fine of almost half a million pounds against the popular loan broking website loans.co.uk. The site is apparently guilty of not treating its customers fairly when it comes to the selling of controversial payment protection insurance products .

Loans.co.uk did not have the controls and systems in place to avert mis-selling of the policies. According to the investigation, many customers were not provided with sufficient information, and loans.co.uk did not research whether the recommendations it was making were suitable.

PPI is one of the most controversial insurance products on the market. The insurance is often added to mortgages or personal loans, and has been criticised for being over-priced hard to claim on and often mis-sold.