Swinton Insurance Refunding 480,000 PPI Policies
The FSA(Financial Services Authority) has fined Swinton Group Ltd, the insurance broker, £770,000 for failings in the sales process of their single premium payment protection insurance.
After discussions with the the FSA, Swinton has also agreed to offer refunds to over 350,000 customers who paid for the PPI.
The FSA have found that Swinton’s PPI(Payment Protection Insurance) sales process was flawed. Swinton have been found to have unacceptable levels of non-compliant sales through including PPI automatically in their insurance quotes without first establishing a customers interest or need for the PPI cover.
Further to this they neglected to make clear that PPI was optional and did not disclose the cost of PPI at the point of sale. Swinton failed to disclose that the policy cost was £1.21 and the remaining £15/£20 charged was a fee for Swinton.
All Swinton PPI customer will now be able to get a full refund of payments made. The company are also about to review previously rejected claims with a view to paying compensation and offering refunds where appropriate.
Swinton acheived £7.8 million from its PPI sales before leaving the PPI market in March 2008 following a request from the FSA when the above failings came to light.
By settling at an early stage of the FSA investigation Swinton qualified for a 30% reduction on the full fine; were it not for this discount, the FSA would have demanded a financial penalty of £1.1 million.
You can also claim back your own mi-sold payment protection insurance – just follow the link to learn more.
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Tags: Financial Services Authority, Fsa, Insurance, Insurance Broker, Insurance Policies, Insurance Quotes, Insurance Sales, mis-sold payment protection insurance, Payment Protection Insurance, Ppi Market, Swinton Insurance
