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'Insurance firm fined'

(15 Feb 2007)

Going on holiday? – Get a great deal on travel insurance

A financial services provider has been fined £175,000 for mis-selling insurance policies to consumers.

Capital One received the fine as the Financial Services Authority (FSA) reported it did not provide 50,000 customers with enough information about their payment protection insurance (PPI) cover.

Director of enforcement, Margaret Cole, said: "It is unacceptable for people to be put at risk of buying unsuitable protection insurance through not being given the right information at the right time."

She added that consumers should remember PPI is "almost always optional" and consumers should consider whether they actually need it.

PPI provides cover for consumer's personal loan repayments should they run into financial difficulties.

Last month the FSA warned a number of motor, home and travel insurance companies to stop using their advertising campaigns to mislead consumers into thinking they will be able to make savings on their insurance claims.

However travel insurance saving claims were reported to be of a higher standard than their counterparts in the motoring and home insurance industries.

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