FSA has fined five motor dealers for compliance failings in the way they sold PPI alongside loans for cars or motorbikes. It fined GK Group Limited, George White Motors Limited, Ringways Garages (Leeds) Limited, Ringways Garages (Doncaster) Limited and Park’s of Hamilton (Holdings) Limited a total of over £175,000. It found various failings in one or more of the firms, including:
- not gathering enough information about each customer, so there was a risk of unsuitable sales of PPI;
- not monitoring the quality of advice sales staff gave or checking they followed appropriate sales processes;
- not adequately assessing whether customers were eligible to claim for benefits from the PPI policies they sold; and
- not assessing complaints properly.
It found all the firms breached Principle 9 and one also breached Principle 6. All firms have taken remedial action and some have stopped selling PPI altogether or stopped advised sales.