Reclaim George White Motors PPI
George White Motors Limited were fined by the Financial Services Aurthority (FSA) for failings in their controlling and management of Payment Protection Insurance (PPI) sales between January 2006 and December 2007 exposing approximately 282 customers to the risk of buying unsuitable policies.
Penalty given: £28,000
Reasons for this penalty:
- Failures in taking reasonable care when recommending policies
- Failing to gather crucial information from customers including pre-existing medical condition
- Recommeding regular premium policies to customers but then selling single premium policies in its place
- Inadequate monitoring of their sales team meaning staff could easily mis-sell PPI
- Failing to provide policies that matced their customers needs
- Failing to treat customers fairly
- Inadequte Statement of Demands and Needs (SODAN) forms
What the FSA said:
“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 – PPI remains a top priority for the FSA in 2008 and beyond.
“Where we discover PPI failings, we will not hesitate to take tough action and impose higher penalties.”