GE Capital fined £610,000 for selling PPI inappropriately

The Financial Services Authority (FSA) fined GE Capital with a £610,000 and may be forced to pay compensation to its customers for selling Payment Protection Insurance (PPI) inappropriately. GE sells some 850,000 PPI policies a year and has millions of customers. GE Capital provides store cards for retailers in UK, and also offers PPI policies. The FSA made clear that GE is fining for failing to make it clear to store card customers that PPI was optional, and also not provide sufficient information to its customers when they had been sold PPI policies. Margaret Cole, the FSA’s director of enforcement said Millions of people take out store cards every year. They need to know that PPI is almost always optional and should consider whether they need it before signing up Around 7 million PPI policies are sold yearly and the market is estimated to be worth around £5.5bn.