Egg the bank owned by Citigroup fined £721,000

The online bank Egg, owned by Citigroup (NYSE:C) was found guilty of insurance mis-selling on its credit card payment protection insurance (PPI) to nearly half its customers over a three-year period by the Financial Services Authority (FSA).

According to the FSA around 40 percent of Egg customers who brought the controversial insurance between January 2005 and December 2007 are said to be mis-sold the policies.

Payment Protection Insurance (PPI) an insurance cover that covers the repayments on your credit card if the credit card holder became sick, unemployed or was involved in an accident.

The FSA the financial watch dog investigated the Citigroup owned bank and found that the sales staff were over selling the PPI and also told the customers that they could cancel their policy later, the investigation revealed that the bank had told the staff to sell the PPI in this way.

Source: timesonline

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