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A and L fined for PPI misgivings
7 October 2008 16:40
The Alliance and Leicester has been fined £7 million for major failings in its telephone sales of payment protection insurance (PPI).
The penalty was levied by the FSA.gov.uk">Financial Services Authority (FSA) after the lender sold about 210,000 PPI policies over a three year period to customers seeking a personal loan.
While the bank quoted an average price of £1,265, borrowers soon found that Alliance and Leicester had not disclosed the full price including the PPI to them.
Margaret Cole, director of enforcement at the FSA, said that the lender's failings were some of the most serious she had seen, which was reflected in the penalty handed down.
She added that customers should be able to rely on impartial advice given to them by financial firms based on their individual needs and demands.
Alliance and Leicester has offered to review any policies sold to customers between the dates of January 14th 2005 and December 31st 2007.
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