Retailers fined for mis-selling insurance protection
FIVE motor and motorcycle retailers have today been fined a total of more than £175,000 for breaches relating to the sale of Payment Protection Insurance (PPI). As a result, a total of 2175 customers have been put at risk of being sold unsuitable PPI insurance policies.
GK Group, George White Motors, Ringways Garages (Leeds), Ringways Garages (Doncaster), and Park's of Hamilton (Holdings) were fined for selling Payment Protection Insurance along with loans for both cars and motorcycles.
Each company failed to gather adequate information about their customers including medical conditions, existing insurance and benefits received, creating a high risk of unsuitable insurance sales. The firms also failed to monitor the quality of advice issued by staff.
Financial Services Authority (FSA) spokeswoman Margaret Cole commented, “Motor retailers that sell PPI have to meet the same standards as the rest of the financial services industry”.
As a result of the FSA’s action some of the firms have stopped selling PPI and have written to all those customers affected, paying compensation where necessary.