Motor dealers fined for PPI failings
Five motor dealers have been issued fines totalling more than £175,000 by the Financial Services Authority (FSA) for breaches relating to the sale of Payment Protection Insurance (PPI).In all 2,175 customers were exposed to the risk of being sold unsuitable PPI policies by GK Group, George White Motors, Ringways Garages in Leeds, Ringways Garages in Doncaster and Park’s of Hamilton, which sell PPI alongside car or motorbike loans.
Among the shortcomings, the firms were found guilty of failing to gather enough information about each customer and monitoring the quality of advice given by sales staff.
"Motor retailers that sell PPI have to meet the same standards as the rest of the financial services industry," said the FSA’s director of enforcement Margaret Cole.
"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."
She added that where the FSA discovers PPI failings, it will not hesitate to take tough action and impose higher penalties.
The FSA handed out fines of £51,100 to GK Group, £28,000 to George White Motors, £61,600 to Park’s of Hamilton, and £35,000 together to Ringways Garages in Leeds and Doncaster.
Each of the firms qualified for a 30 per cent reduction in penalty by settling at an early stage of the regulator’s investigation and some of the firms have stopped selling PPI as a result of the FSA's visit.
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