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FSA cracks down on Egg PPI miss-selling
10 December 2008 16:53
Egg Banking has landed itself a fine of more than £720,000 for miss-selling its customers credit card payment protection insurance (PPI).
The FSA.gov.uk">Financial Services Authority (FSA) found that between January 2005 and December 2007, Egg's customer services team used aggressive and inappropriate techniques to persuade people to buy PPI.
Methods included over-selling the positive attributes of the product, offering free trial periods, and - if the customer refused - applying PPI to their credit card anyway.
Margaret Cole, director of enforcement at the FSA, said that Egg used unsuitable sales methods in a bid to get customers to purchase PPI for their credit card, even after they had made it clear they did not want the product.
She added that Egg's actions were unacceptable and the FSA would continue its policy of fining companies for miss-selling PPI deals.
According to the authority, Egg sold more 106,000 credit card PPI products to customers on a non-advised basis at an average cost of over £155.
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