Capital One PPI systems and controls flaws cost £175,000 fine

FSA’s campaign to raise selling standards amongst payment protection insurance (PPI) providers has now caught Capital One, part of the Capital One Financial Corporation, which serves almost 50 million account holders in the US, Canada and the UK. The firm, which in the UK offers credit cards, loans and savings accounts, as well as acting as an insurance intermediary, has been fined £175,000 for breaches of Principles 3 (responsible and effective organisation and control, with adequate risk management systems) and 6 (treating customers fairly) in connection with sales of PPI to its credit card customers.