The parent company of a group of lenders has been fined over £2 million for the way in which it handled complaints about the mis-selling of Payment Protection Insurance.
CT Capital’s failures meant that people were missing out on PPI compensation that was rightfully owed to them, the City watchdog, the Financial Conduct Authority confirmed – stating also that the average refund was nearly £6,000. CT Capital only reviewed and changed their procedures after the FCA were forced to step in and intervene.
Payment Protection Insurance was designed to cover loan repayments when borrowers lost their jobs or fell ill – a noble gesture, however it was mis-sold on a massive scale throughout the industry.
CT Capital was the parent company of a group of lenders and loan brokers. From January 2005 to October 2008, the CT Group sold over 30,000 PPI policies, receiving a net figure of about £60 million.
The FCA has stated that between May 2011 and November 2013, during which time it handled nearly 7,000 PPI complaints, it failed to deal with claims in the correct manner, resulting in hundreds of customers missing out on their refund.
The FCA has stated that there is no reason that firms should be treating their customers in such an unfair manner and warned that there is no room for companies to make the same mistake twice.
The FCA announced that CT Capital revisited its PPI complaints policy with an external consultant and reviewed nearly 5,000 complaints, either previously rejected or underpaid.
By January 2016, it had paid approximately £74m in redress arising from PPI complaints.