The FSA has slapped a £455,000 fine on Loans.co.uk (LCUK) for failing to treat its customers fairly when selling payment protection insurance (PPI).
It comes as the FSA steps up its campaign to crack down on PPI mis-selling practices.
The regulator said it had uncovered inappropriate systems and controls which would minimise the risk of unsuitable sales at the company.
The company, which sold PPI over the telephone, had failed to gather and record information to show that the policy recommendations it made were suitable.
The FSA also discovered that the company failed to give enough information at the point of recommendation to allow customers to make an informed decision about the PPI policy being offered.
