FBD hit with €500k fine by Central Bank over consumer protection breach
Published 15/05/2014 | 12:00
Insurer FBD has been hit with half a million in fines by the Central Bank for breaches of consumer protection legislation.
The farm and motor insurer has been fined €490,000 by the regulator for failing to uphold parts of the Consumer Protection Code 2006, which was replaced by new legislation in 2012.
This included a failure to alert some customers that they were being recorded during phone conversations, a failure to provide all terms of contracts in writing and neglecting to put in place a proper procedure for handling complaints.
It also failed to advise some customers that they could be levied with an administration charge for providing incorrect information, and did not ensure that contractors hired for oursourced work also implemented the Code. The Central Bank highlighted this last breach as particularly unacceptable.
The breaches of the Code were identified by FBD itself, who notified the Central Bank. FBD said the issues are historical in nature and were all remedied by the time the investigation was finished, adding that there was no loss to customers.
“FBD identified the breaches of the 2006 Code and reported these to the Central Bank” said the company. “While we are obviously very disappointed that these breaches occurred, we are satisfied that they are legacy issues. We are pleased that the Central Bank has confirmed that the appropriate remedial action was promptly taken by FBD. Most importantly we are confident that no customer was financially disadvantaged. FBD will continue to work ever harder to maintain our high standards and improve our customer experience.”