Nice Loans.co.uk > News > Insurance Fine for Cheap Loans Provider
Loans Insurance
A major UK provider of loans has been handed a million pound fine by the FSA for poor practices when selling insurance cover to it's loans customers.
The FSA has made numerous announcements over the past few years about it's intention to clamp down on the mis-selling of payment protection insurance by loans companies. It's latest fine issued to HFC Bank, part of HSBC, sends a message to other loan providers that it is serious about it's warnings and will come down heavily on those companies who do not act within the current regulations.
The loans operation, which was bought as part of the Houshold International acquisition by HSBC five years ago, trades under different brands in the UK loans marketplace and also operates many of the UK's credit card brands. They provide both secured loans and unsecured loans as well as providing many of interest-free credit schemes found in major UK high street shops.
The problems within HFC were identified as inadequate systems and controls to stop loans customers being sold insurance that was either not required or was inappropriate.
HFC is reported to have over 1.5 million customers in the UK for it's various products, but not all are loans customers.
HFC is the latest loans company to receive an FSA fine, but it's certainly one of the biggest issued. Had it not been for the firm's co-operation, the fine would have been even larger.
The loans industry is undergoing wide ranging changes due to changes in insurance products and the expensive cost of credit provision at the moment. Customers are advised to shop around to find a cheap loan.
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