PPI issues result in fines for five dealerships
September 25, 2008
According to a recent report issues over the sale of Payment Protection Insurance, or PPI, has resulted in five car dealerships being fined by the UK’s financial regulator the Financial Services Authority recently. The five motor dealerships were found to be mis-selling PPI to consumers without carrying out necessary checks or ensuring that the cover was suitable for the consumer. The sale of PPI is something that the FSA has been cracking down on over the past couple of years.
So far the company to have faced the largest fine over the mis-selling of PPI is HFC Bank, which was fined £1 million for breached of regulations earlier this year. The five motor dealerships have been fined a total of £175,000 between them for the violations.
Officials from the FSA said that there had been serious breaches of regulations relating to the sale of PPI, and that over two thousand customers had been put at risk of purchasing PPI policies that were not suited to their needs.
The five dealerships that were fined by the FSA were GK Group, George White Motors, Ringways Garages in Leeds, Ringways Garages in Doncaster, and Park’s of Hamilton.
According to the FSA the dealerships had not checked the circumstances of customers to ensure that the policies would be suited to their needs and circumstances, and they were not monitoring the quality of advice that was being given to customers by sales staff.
An official from the FSA said: “Motor retailers that sell PPI have to meet the same standards as the rest of the financial services industry. All firms selling PPI must treat their customers fairly, including taking proper steps to make sure sales are suitable and customers are eligible to claim on the policy.”
Related Articles
- Severn Trent profits plunge due to fines The profits of water giant Severn Trent have plunged because of the hefty fines that have been imposed by the water regulator Ofwat. The water
- Many younger consumers too optimistic about financial future A recent report claims that many younger consumers in the UK are too optimistic about their financial futures, fuelling speculation that many are not educated
- Southern Water gets fined millions Officials from the UK's water regulator, Ofwat, have reported that Southern Water has been fined over £20 million for mis-reporting information and providing poor service.
- Are you better off buying a used car rather than a new car? With the 2008 new number plate hitting showrooms across the country, many consumers may be thinking about getting their hands on a brand new motor.
- First fall in house prices in two years According to a recent report house prices in the UK have fallen for the first time in the last two years, indicating that the market
Comments
Got something to say?