Liverpool Victoria fined for insurance misselling

LONDON (Reuters) - The financial services regulator fined mutual society Liverpool Victoria 840,000 pounds for failings in its sales of insurance protection policies from 2005 until last August.

The Financial Services Authority said on Wednesday that when customers rang Liverpool Victoria Banking Services to apply for a personal loan it added the cost of payment protection insurance to the quotation, put pressure on customers to take the PPI and also failed to explain the cost.

The regulator said LVBS had stopped all sales of PPI and was contacting customers to pay them compensation where appropriate.

LVBS is the eighth firm to be fined for poor PPI selling practices, and the fine was the second largest imposed.