FCA fine Vanquis £1.96 million and orders them to pay compensation

The Financial Conduct Authority have fined Provident Group, credit card lender, Vanquis, £1.96 million and ordered them to pay compensation.

The FCA found that Vanquis mis-sold its customers, from 2003, an add-on product for its credit cards, called a Repayment Option Plan (ROP).

The product was intended to give Vanquis customers the option of an annual payment holiday, without fees or charges, for the cost of the ROP.

However, Vanquis failed to alert it’s customers to the fact the ROP fee attracted interest and this wasn’t cleared until the balance was cleared at the end of each month.

The FCA Fine has ordered Vanquis to pay compensation to all its customers affected from the 1st April 2014, when they took over regulation of the consumer credit market; however Vanquis has voluntarily agreed to pay it to customers who bought the product between 2003 to the 31st March 2014.

Customer affected by the product do not need to do anything, as Vanquis has offered to identify and contact all affected customers.

For more information, see here.