The Financial Services Authority (FSA) has fined five motor dealerships a total of £175,000 for mis-selling payment protection insurance (PPI).
GK Group, George White Motors, Ringways Garages (Leeds), Ringways Garages (Doncaster), and Park’s of Hamilton have been found guilty of serious breaches of the regulations governing PPI sales, putting 2175 customers at risk of buying unsuitable cover.
All five firms failed to gather sufficient information from customers; one firm did not assess whether customers were eligible to claim on their PPI policies and another failed to deal with complaints acceptably.
FSA spokeswoman, Margaret Cole, points out that motor retailers that sell PPI have to meet the same standards as the rest of the financial services industry.
Income protection insurance: News update: August 2008