Loans.co.uk fined £450,000 by FSA

Loans.co.uk, which describes itself as "your best friend in the loans business", and specialises in secured lending for debt consolidation purposes, has been fined £450,000 by the FSA for mis-selling payment protection schemes with its loans. The FSA found that sales staff did not give enough information about the policies to over 14,000 customers and failed to treat its customers fairly as a result. Margaret Cole, FSA Enforcement Director commented that:

"Loans.co.uk Limited failed to make sure adequate processes were in place to ensure the suitability of its PPI recommendations and treat its customers fairly. The principle of Treating Customers Fairly should be embedded in firms' business models to help prevent such failings and it is important that all firms review their systems and controls to reach this standard."

In addition to the fine, the FSA has forced Loans.co.uk to draw up a remedial action plan which requires it to contact customers who may have been treated unfairly and provide redress where the PPI policy was not suitable to meet their needs.