Mis Selling Of The Financial Crisis

Decent Essays

Mis-selling of CPP

Since 2008 sub-prime mortgage crisis was happened, the banking sector had received unprecedented impact. Some severe cases that are bankrupting of banks and banks took over by the government were continually happened. Under enormous pressure, banks constantly look for new ways to earn more money to make up for previous losses. They all want to come out from the financial crisis as soon as possible but the fact is not the same as the expectation.

According to reports that fines of big banks with various misdeeds continue to a new record. These acts are diverse from violate the sanctions to tax avoidance. Their market manipulation is not limited to LIBOR ( London Inter Bank Offered Rate) between London Banks, but also …show more content…

The company also have a specialised office in Manchester City center which specialise in the upkeep of Airport Angle, one of its products. There was also formerly an office in chesterfield. CPP company was founed by Hamish Ogston in 1980 as the card protection insurance. It acquired its mobile phone insurance and care insurance companies in 2001. Then it acquired its Metris Enhancement Services in 2003 and its Leapfrog Group in 2009. It was first listed on the London stock exchange in 2010. However, this is a better future are broken in 2013, as a result of the FSA probe, business partners lost confidence in the company and contracts were lost. It is listed on the London stock exchange and is a constituent of the FTSE Fledgling Index.

Many customers were put in contact with CPP when they rang a number on their new bank card in order to activate it. Many though they were talking to their bank, but they were in fact being in touch with a salesperson from CPP. According to reports that during the period of mis-selling between January 2005 and March 2011, CPP sold 4.4 million policies and generated £354 million in gross profit. A further 18.7 million policies were renewed during the same period, generating an income of £656 million.
Business (2013)

The Financial Conduct Authority (FSA) said that customers had been ‘ given misleading and unclear information about the policies’. And the new financial markets regulator said that the

Get Access