HFC Bank fined £1m over insurance

[Solowka]

A part of banking group HSBC has been fined £1m for failings over payment protection insurance (PPI).

The Financial Services Authority (FSA) said HFC Bank failed to ensure customers received suitable advice between January 2005 and May 2007.


http://news.bbc.co.uk/1/hi/business/7191506.stm

[Amethyst]

Re: HFC Bank fined £1m over insurance

Good

[EXC]

Re: HFC Bank fined £1m over insurance

This is the final notice. They get a 30 percent discount for early payment. Fine one get one free?

http://www.fsa.gov.uk/pubs/final/hfc_bank.pdf

[Guest]

Re: HFC Bank fined £1m over insurance

What is £1M to HSBC Group? (Or, more precisely £1,085,000)

They reported profits of £11.5bn last year. That equates to £31,506,849 per day, or £1,312,785 per hour. So, in 49 minutes and 36 seconds they will have made enough profit to cover the fine.

Now, contrast that with the profit they made on (mis)selling 163,000 PPI policies in the period for which they were fined and it appears to be nothing more than good business to keep on doing it.

To put this in perspective - According to the Office for National Statistics the average wage for a man during 2007 was £498 per week, or £25,896 per year.

If our average man was fined at the same level, in relation to his income for the year, for say, bouncing a cheque, then the "fine" would be £2.44 instead of the £35 odd that this bank charges.

How many of us would sue if the charge for bouncing a cheque was £2.44 - and how much do you think this paltry fine has hurt HSBC?

Once again, the FSA show us all whose side they are on.