The regulator fined GK Group Ltd £51,100, George White Motors Ltd £28,000, Ringways Garages Ltd in Leeds and Doncaster £35,000 and Park’s of Hamilton Ltd £61,600 for putting 2,175 customers at risk when selling PPI alongside car and motorbike loans.
According to the FSA the five firms failed to gather enough information about each customer and failed to monitor the quality of the advice given by sales staff. One firm did not adequately assess whether customers were eligible to claim for benefits from the PPI policies they sold, and another did not assess complaints properly.
FSA Director of Enforcement Margaret Cole says: “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.
“Where we discover PPI failings, we will not hesitate to take tough action and impose higher penalties.”