The FSA has today fined Redcats £270,000 for failing to treat its...
The FSA has today fined Redcats (Brands) Ltd £270,000 for failing to treat its customers fairly when selling payment protection insurance (PPI) in connection with home shopping products.
The regulator found that the home shopping specialist did not have adequate systems and controls in place to minimise the risk of unsuitable sales. There were also weaknesses in the way that Redcats operated and maintained its compliance systems, training and competence arrangements and sales processes.
The FSA found that over an 18-month period approximately 160,100 customers were sold PPI which might not have been suitable for their individual needs. Despite stating that its sales were made on an advised basis, Redcats failed to comply with regulatory requirements for advised sales.
FSA Director for Enforcement Margaret Cole said: “As a result of its systems and control failures Redcats exposed its customers to an unacceptable level of risk. Firms offering PPI must operate in a way that treats their customers fairly and meets regulatory requirements.”
By agreeing to settle at an early stage of the FSA investigation Redcats qualified for a 30% discount under the FSA's executive settlement procedures – without the discount the fine would have been £386,000.
