Car retailers fined for PPI failings

The FSA has fined five motor dealers for serious failings in the sale of payment protection insurance (PPI).

Over 2,000 customers were put at risk of being sold an unsuitable PPI policy, and the retailers face a total fine of more than £175,000.

GK Group Limited, George White Motors Limited, Ringways Garages (Leeds) Limited, Ringways Garages (Doncaster) Limited and Park’s of Hamilton (Holdings) Limited all sold PPI alongside car and motorbike loans.

However, all five firms failed to gather sufficient information from customers, including medical conditions, existing insurance cover and employer benefits. Firms also failed to monitor the quality of advice given by sales staff.

In addition, one firm did not assess whether customers were eligible to claim benefits for the PPI policies, while another did not deal with complaints properly.

As a result of the FSA’s investigation, some of the firms have ceased selling PPI, and have also written to affected customers offering compensation, which the regulators took into consideration when setting its fines.

Park’s of Hamilton suffered the largest fine of £61,600, GK Group was fined £51,100, George White Motors received a fine of £28,000 and both Ringways garages were fined a total of £35,000.

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John Bakie
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