The PPI Claims Solicitor

Fined Alliance & Leicester

Posted on 27 May 2009

Alliance & Leicester Plc (A&L)

The Financial Services Authority (FSA) has fined Alliance & Leicester Plc (A&L) £7 million for serious failings in its telephone sales of payment protection insurance (PPI).

For three years from January 2005 to December 2007 A&L sold approximately 210,000 PPI policies to customers seeking a personal loan at an average price of £1,265, but there was a general failure by advisers to give customers details of the cost of PPI. In addition Alliance & Leicester sought to find reasons to sell PPI without properly considering what customers needed.

Alliance & Leicester did not make it sufficiently clear that PPI was optional and it trained its staff to put pressure on customers where they queried the inclusion of PPI in their quotation or challenged advisers’ recommendations.

The FSA found that:-

“The failings at Alliance & Leicester are the most serious we have found. This is reflected in the record PPI fine. It is very disappointing that after three years of regulation we are still finding serious problems in PPI sales.

For more information please visit the FSA Web Site:

http://www.fsa.gov.uk/pages/Library/Communication/PR/2008/115.shtml

CLAIM NOW

If you answer Yes to one or more of the following questions you may have a claim for PPI refund -

Alliance and Leicester failed to ask me about any pre-existing medical conditions when I took out a PPI policy
Alliance and Leicester failed to ask if I was or was shortly due to become self-employed when I took out the PPI policy
Alliance and Leicester failed to ask if I was retired or very close to retirement ages when I took out the PPI policy
Alliance and Leicester failed to ask if I was not employed (including student) when I took out the PPI policy
Alliance and Leicester failed to ask if I was a public services employee when I took out the PPI policy
Alliance and Leicester failed to ask if I had other protection policies in place when I took out this loan
Alliance and Leicester failed to advise me that I did not need the PPI policy as I could have repaid the loan/outstanding balance using my savings
Alliance and Leicester failed told me that the PPI policy was compulsory and not optional
Alliance and Leicester failed to ask if I was not aware that the PPI policy was optional
Alliance and Leicester failed advise me that I would get a better interest rate or the PPI would cost much less if I took the PPI policy out with another insurer
Alliance and Leicester did not make me aware of the cost of the premiums on the PPI policy
Alliance and Leicester did not make me aware that the PPI policy cost would be added to the loan and I would pay interest on the cost
Alliance and Leicester did not make me aware that I had taken out the PPI policy when I took out the loan
Alliance and Leicester did not make me aware that I could purchase alternative PPI policies with other providers when I took out the loan
Alliance and Leicester did not make me aware that the PPI policy did not cover the life of the loan