FSA hits firms with big fines for failings

Published on Saturday 17 May 2008 14:32

THE City watchdog has fined sofa retailer Land of Leather £224,000 for failings surrounding sales of payment protection insurance, which exposed 58,000 customers to the risk of being missold the cover.

The Financial Services Authority also fined sub-prime mortgage company Thinc Group 900,000 for not having records demonstrating they had given appropriate advice to at-risk borrowers.

Margaret Cole, FSA director of enforcement, said: "This case demonstrates the importance of firms being able to prove to themselves and to the FSA, through proper records, that they are treating their customers fairly by doing everything necessary to make sure that they get suitable advice.

"The level of fine shows that we are determined to impose higher fines for serious failings in the retail market."

The firm's failings were particularly serious because its conduct could have had an adverse effect on customers, many of whom had adverse credit histories, the FSA added.

New saver offers

COVENTRY has increased the rate on its 50 Plus eSave account to 6.1%.

The online account, available exclusively to the over-50s, pays a fixed rate for 12 months with a minimum investment of 1.

Leeds and Yorkshire Building Societies have both launched new two-year fixed-rate bonds. Leeds's postal bond pays 6% in the first year and 7% in the second. The bond from Yorkshire offers a rate of 6.5% with a minimum deposit of 100.

Alliance & Leicester International has launched a limited-edition, one-year fixed-rate bond paying 6.65%, with a minimum balance of 50,000.

Mortgage rates cut

ABBEY has reduced its mortgage rates. Its two-year fixed rate is now 5.95% with a 995 arrangement fee, and the two-year tracker offers 5.97% with a 999 fee.

The three-year fixed rate is 5.87% with a 999 fee, and the five-year fixed rate is 5.75% with a 1,499 fee.

Nationwide has also cut rates. For homebuyers, the two-year fixed rates, one with a fee of 599 and one without a fee, have both dropped by 0.15% to 5.95% and 6.35% respectively.

The five-year fixed rate has fallen by 0.3% to 6.15% and has a fee of 599.

For those remortgaging, two-year fixed rates with and without a 599 fee have been reduced by 0.15% to 6.15% and 6.55% respectively.

The five-year fixed rate is now 5.95%, a 0.2% reduction, with a fee of 599.