Egg Fined £721,000 Mis-selling PPI Claims

The Financial Services Authority (FSA) has fined Egg Banking plc £721,000 for serious failings in its sales of credit card payment protection insurance (PPI).

The FSA found failings in approximately 40 per cent of telephone sales of credit card PPI made by Egg between January 2005 and December 2007. Egg sold PPI either when receiving a customer services call, or when making a sales call to a new customer. When Egg customers said they did not want PPI on their credit cards, the firm directed its sales staff to use techniques to persuade the customer to take the insurance - called 'objection handling'.

These techniques included over-emphasising the positive features of the PPI, or telling the customer they could take the PPI for a free period and cancel it later if they did not want it. In some cases, even when the customer did not consent, PPI was applied to their credit card anyway.

For more reading visit the FSA web site